KUALA LUMPUR (Oct 28): Malaysian Resources Corp Bhd (MRCB) has bagged a RM3.1 billion contract from Kwasa Utama Sdn Bhd (KUSB), the master developer for the Kwasa Damansara township in Sungai Buloh, Selangor, to build a commercial project called Kwasa Utama (Plot C8) in the new township.

In a statement today, MRCB said it has signed a management contract with KUSB, appointing MRCB as management contractor for the proposed project.

KUSB is 95%-owned by the Employees Provident Fund (EPF) and the remaining 5% stake is held by Kwasa Land Sdn Bhd, which in turn is wholly-owned by EPF.

The 29.82-acre Kwasa Utama development, which will span over a period of 12 years from 2016 to 2027, is expected to comprise seven separate development plots. It will feature eight office towers, a hotel, an auditorium and a common facility block.

These buildings will have a collective gross floor area of 7.91 million sq ft, with an estimated gross development cost of RM3.87 billion.

MRCB's group managing director, Tan Sri Mohamad Salim Fateh Din, said MRCB will use its expertise and experience working with appointed professionals in creating a new growth centre for corporate entities and businesses at Kwasa Utama.

"(The proposed) development will cater to the needs of corporate and commercial purchasers, including their requirements for corporate hospitality and conferencing,” he added.

With the signing of the agreement, MRCB will be delivering various project milestones via the overall project management, engineering, procurement, construction and commissioning of works.

"The development which spans over 12 years, will not only allow the group to enhance its construction and engineering project pipeline, but is also expected to provide the group with a steady stream of income over the development and construction period, which in turn is expected to contribute positively to MRCB’s future earnings,” the group said in a filing with Bursa Malaysia today.

The management contract is conditional upon MRCB obtaining its shareholders’ approval for the proposed construction on or before April 30, 2016.

The group expects the management contract to become unconditional by the second quarter of 2016.

MRCB's shares closed unchanged at RM1.19 today, giving it a market capitalisation of RM2.13 billion.

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