MRCB optimistic on property sales

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB), which expects continued growth in 2015, is targeting 70-80% sales of the RM1.2 billion new launches planned this year amid a slowdown in the property market.
Speaking to reporters after the company's AGM and EGM here yesterday, its CFO Ann Wan Tee said sales will be supported by the diversified properties portfolio, which caters to different segments.
MRCB plans to launch four to five property projects with a gross development value (GDV) of RM1.2 billion in 2015. The new launches include The Grid @ 21 Kia Peng, Semarak City (Phase1), 9 Seputeh (Phase2) and Kajang 3 Residences.
MRCB swung back into the black for the financial year ended Dec 31, 2014 with a net profit of RM153 million, compared with a net loss of RM110 million it incurred a year ago.
Currently, MRCB has an undeveloped landbank of 256 acres, carrying a potential development value of RM30 billion. The landbank is sufficient for development over the next 12 to 15 years.
On the bid for the French embassy land, Ann expects the bidding outcome to be announced next month.
If MRCB wins the deal, this would mark MRCB's second embassy land buy within the city centre in the last few months.
MRCB acquired the German embassy land measuring 1.87 acres for RM259.16 million, with plans for a RM1.2 billion to RM1.6 billion gross development value mixed development.
Meanwhile, Ann said MRCB has no plan to acquire the land that Lembaga Tabung Haji (LTH) is looking to sell after it came under fire for the buy.
He stressed that any land acquisition made by MRCB must be able to meet its investment criteria.
"We're looking at least 15-20% margin on revenue basis, if below that we'll reject," he said.
For the construction segment, Ann said MRCB has a tender book of about RM2 billion which mainly comprises infrastructure projects.
"Our focus has always been property, but we're trying to grow the construction business as well, we've left that behind a bit, we're too focused on KL Central," he noted.
Over the longer term, he said the group is looking to balance the revenue contribution from both the property and construction segment from the current ratio of 55:45 respectively.
MRCB's share price closed 1 sen higher to RM1.34 on some 1.14 million shares done.