PETALING JAYA: Malaysian Resources Corp Bhd (MRCB)’s indirect wholly owned subsidiary, Subang Sentral Sdn Bhd (SSSB), has entered into a conditional sale and purchase agreement with Digital Cosmos Malaysia Sdn Bhd for the disposal of seven parcels of land in Cyberjaya for RM419.05mil cash.

The parcels, originally measuring 36.66 acres, will be consolidated into a single title deed after surrender and re-alienation, resulting in a larger tract of 45.81 acres.

In a filing with Bursa Malaysia, MRCB noted the plot is located within Cyberjaya City Centre. An independent valuation from Raine & Horne International Zaki + Partners Sdn Bhd put a market value of RM419.1mil (RM210 per square foot) on the land.

MRCB expects to make a pro forma gain of RM81.4mil on the disposal. This move reflects MRCB’s ongoing asset monetisation strategy, and RM350mil of the proceeds will be used to repay its sukuk Murabahah due over the next 12 months.

Based on the prevailing interest rate of 4.24% per annum, the repayment of the borrowings is expected to result in estimated gross interest cost savings of RM14.84mil per annum, MRCB noted.

MRCB intends to utilise RM31.12mil of the money to meet the group’s working capital requirements for its construction and property development activities.

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