By BUSINESS TIMES
MALAYSIAN Resources Corp Bhd (MRCB) said it is partnering CMY Capital Sdn Bhd to buy a RM121 million piece of land at the KL Sentral area in Kuala Lumpur.
Both companies have formed a joint venture outfit in February called One IFC Sdn Bhd which will buy the land from Kuala Lumpur Sentral Sdn Bhd.
The land will be developed into a mixed development with a total gross floor area of 1.4 million sq ft.
The piece of land known as “Lot C” is a freehold property that has been approved by Dewan Bandaraya Kuala Lumpur for mixed development.
MRCB yesterday said development of Lot C is expected to start next year and will continue for four years.
The project’s estimated gross development value is in excess of RM1 billion.
The joint venture company intends to finance the project either through equity injections, shareholders’ advance and/or bank borrowings.
MRCB said the joint venture will enable it and CMY Capital to pool their resources and expertise to develop a prime lot in the KL Sentral development, which is the premier property location in Kuala Lumpur.
The Proposed Joint Venture is not expected to have any material impact on the earnings and net tangible assets of MRCB for the current financial year ending 31 December 2007.
MRCB will have a 40 per cent stake in the joint venture while CMY will hold the rest.
MRCB’s stake will comprise four million shares of RM1 each and 96 million redeemable cumulative preference shares (RCPS) while CMY’s stake will comprise six million shares and 144 million RCPS.
The RCPS carries a preferential dividend at the rate of eight per cent a year.
Every RCPS of RM1.00 each can be converted to one ordinary share of RM1.00 after the third anniversary to the twelfth anniversary of their issuance of the RCPS.