KUALA LUMPUR (Dec 19): Malaysian Resources Corporation Bhd (MRCB) has received RM1.07 billion from the Employees Provident Fund (EPF) for its 80% subscription in Bukit Jalil Sentral Property Sdn Bhd (BJSP), the special purpose joint venture company undertaking the development of Bukit Jalil Sentral.

Bukit Jalil Sentral, which measures 76.14 acres, is a mixed development project with a GDV of RM21 billion. The 80% equity interest in BJSP will reside with the EPF’s unit Tanjung Wibawa Sdn Bhd, and MRCB’s subsidiary Rukun Juang Sdn Bhd will retain a 20% equity interest. The land will be developed over the course of 20 years, ensuring a sustainable pipeline of construction contracts for the group in the long term.

Recently, MRCB also received the settlement sum of RM1.32 billion from the Malaysian government over the termination of its concession for the Eastern Dispersal Link Expressway (EDL).

In a statement today, the group said the payments have further strengthened the group’s balance sheet, reducing net gearing to 24%. “During the 4-year transformation, MRCB has successfully reduced its net gearing from 172% to 24%, and it has increased its urban land bank 4-fold to 282 acres, with GDV increasing almost 3-fold to RM31 billion.”

It said MRCB’s external construction order book has also grown exponentially during this time, from only RM2 billion to RM21 billion, and is currently ranked as the highest in the industry.