MRCB wins RM4.8 billion jobs, kicks off Cyberjaya City Centre project

CYBERJAYA: Malaysian Resources Corp Bhd (MRCB) won some RM4.775 billion worth of jobs and kicked off its RM8 billion-RM10 billion Cyberjaya City Centre (CCC) project yesterday.
The group, which hosted a joint venture signing ceremony between itself and Cyberview Sdn Bhd for the development of CCC, also announced two new jobs – a RM1.63 billion contract for the refurbishment and upgrading of facilities at the National Sports Complex in Bukit Jalil, Kuala Lumpur, and a RM3.145 billion management contractor job for Kwasa Utama, a 29.82-acre area within the Kwasa Damansara township.
In an announcement to Bursa Malaysia yesterday MRCB said the award of the National Sports Complex job by the Youth and Sports Ministry will see MRCB paid in kind through the transfer of three parcels of land. The three pieces of land measuring a total of 92.5 acres will be transfered to Rukun Juang Sdn Bhd, an 85%-owned subsidiary of MRCB Land Sdn Bhd.
Rukun Juang has entered into a land privatisation agreement with the government, represented by the Youth and Sports Ministry and Syarikat Tanah dan Harta Sdn Bhd (Hartanah), in relation to the contract.
MRCB will refurbish, renovate and upgrade the National Stadium, Putra Stadium, hockey stadium and aquatic centre at the National Sports Complex together with the construction of common infrastructure such as parking, new signage and others under Project 1.
Project 2 will be the upgrading of the National Stadium, developing, planning, designing, constructing, completing and commissioning of a sports complex, sports mall, convention centre, a multi storey car park, hostels, sport museum, library, youth park together with the construction of the common infrastructures and other works.
Meanwhile, in a separate filing, MRCB said it has been appointed management contractor by Kwasa Utama Sdn Bhd (KUSB) to provide services in connection with the commercial development named Kwasa Utama for RM3.145 billion.
MRCB will construct financial models for a feasibility study and as a basis for planning Kwasa Utama; provide sales and marketing consultancy for the en bloc lease of the retail, hotel and office buildings of the project; and facilitate KUSB in obtaining all required authority and statutory approvals.
The two announcements followed the signing of a 70:30 joint venture (JV) agreement between MRCB Land and Cyberview to develop Phase 1 of Cyberjaya City Centre (CCC). CSB Development Sdn Bhd has been identified as the JV company, with MRCB holding the majority stake.
MRCB Land will pump in RM269.5 million into the JV company while Cyberview will be investing RM115.5 million by October 2016. MRCB’s portion will be funded by bank borrowings and/or internal funds.
Proceeds from the initial capital contributed by the parties will be used to acquire land within Phase 1 (RM348.75 million), payment of land related cost such as stamp duty and GST (RM31.38 million) and initial working capital (RM4.87 million).
Phase 1 of CCC comprises a convention centre, hotel, offices and retail lots to be built on 53.37 acres with a gross development value of RM5.35 billion. Construction of the first phase will start in the first half of 2016 and will take seven years to complete.