Pics of new MRT train in testing phase.Picture taken near the MRTdepot in Sungai Buloh. AZMAN GHANI / The Star
KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) has decided to sell a piece of 4,074 sq m land in Kuala Lumpur, where it had intended to develop a serviced apartment block, to Mass Rapid Transit Corp Bhd (MRT Corp) after learning that the upcoming MRT line would cross the site “directly below” that land.
It told Bursa Malaysia that its unit OneSentral Park Sdn Bhd sold the leasehold land in Section 63 to MRT Corp for RM180mil, taking into consideration the net book value and development potential of the land.
The original cost of the land was RM34.35mil and its net book value is RM68.7mil based on the audited accounts for the last financial year ended Dec 31, 2015.
MRCB said in view of the MRT works, the land‘s development would have been exposed to a higher risk of significant delays and cost overruns.
“The proposed disposal will allow the MRCB group to avoid any potential risk of significant delays and cost overruns and unlock value from the early monetisation of the land,” it said.
The proceeds would be used for working capital and property development activities within six months of the completion of the proposed disposal, the company said.
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