PETALING JAYA: Malaysian Resources Corp Bhd (MRCB), through its wholly owned subsidiary Country Annexe Sdn Bhd (CASB), has entered into a joint venture development agreement with Ipoh Sentral Sdn Bhd (ISSB) to undertake the proposed Ipoh Sentral project in Ipoh, Perak.
In a filing with Bursa Malaysia, MRCB said the agreement formalises the collaboration for a proposed mixed-use development based on a transit-oriented development (TOD) model on two parcels of leasehold land.
The lands, which span a combined 296,727 sq mt, are currently in the process of being transferred from Railway Assets Corporation to its wholly owned subsidiary, Railway Assets Holding Sdn Bhd.
Under the agreement, CASB will take on the role of master developer, commencing with the planning and design works for submission to the authorities for the masterplan development order.
The project, excluding a designated cultural zone, carries an estimated gross development value of RM6.25bil and a gross development cost of RM5.62bil.
As part of the agreement, CASB will pay ISSB a consideration of up to RM348mil, which includes a guaranteed minimum of RM198mil. The payment will be made through a mix of cash and in-kind assets over a 20-year development period.
MRCB said the joint venture is in line with its strategy to expand its land bank and reinforce its position in TOD developments.
“The TOD project will provide recurring income throughout its development period and serve to showcase the company’s capabilities in property development, engineering and construction,” it added.
The group noted that the commencement and completion dates for the project cannot be determined at this stage, as the development plan has yet to be submitted to the relevant authorities.
