EPF to take up 80% stake in MRCB subsidiary for RM421m

KUALA LUMPUR: The Employees Provident Fund (EPF) Board is taking up an 80% stake in Malaysian Resources Corporation Bhd's (MRCB) subsidiary which will receive 28.13 acres of land in Kuala Lumpur in exchange for upgrading and privatising the National Sports Complex (NSC) in Bukit Jalil.

MRCB said on Monday its 85% owned Rukun Juang Sdn Bhd would receive the land in exchange under the privatisation agreement with the Youth and Sports Ministry and Syarikat Tanah dan Harta Sdn Bhd

MRCB would then subscribe for a 20% in the company which will be directed by Rukun Juang to hold the exchange land. The other 80% would be taken up by the EPF for RM421.52mil.

It said the piece of land would have a leasehold period of 99 years and subject to the category of “building”. The approved plot ratio for the development of the Exchange Land 1 shall be no less than 1:6.5; 

“Prior to the signing of the agreements, MRCB shall provide EPF with a full market study report and a business plan, including a timeline for the development of the Exchange Land 1 and the agreements shall be subject to EPF being satisfied with the results of their due diligence,” it said.

To recap, MRCB announced on Feb 5 that Rukun Juang Sdn Bhd has fulfilled the conditions precedent under the RM1.63bil Kuala Lumpur Sports City deal signed in October last year.

The Youth and Sports Ministry had given Rukun Juang two deadline extensions to meet the conditions precedent, with the latest deadline coming up on Wednesday next week. After giving the second extension, the ministry inked a supplemental agreement with MRCB and Syarikat Tanah dan Harta Sdn Bhd modifying certain deliverables.

“The privatisation agreement has become unconditional on Feb 4,” the company said.

Under the agreement, Rukun Juang will upgrade the NSC in Bukit Jalil and turn the area into a sports hub, festuring, among others, a sports-focused retail mall, a convention centre, a sports museum and youth hostel.

The government will pay the company in both cash and kind - with three parcels of leasehold land nearby spanning 37.4ha as well as RM31.88mil in cash.