EPF to take 80% stake in MRCB's Rukun Juang

PETALING JAYA: The Employees Provident Fund (EPF) plans to take up a 80% stake in a Malaysian Resources Corp Bhd (MRCB) unit which will own 28.13 acres of land in the Bukit Jalil vicinity in Kuala Lumpur for RM421.52 million.
MRCB's 85% subsidiary Rukun Juang Sdn Bhd said it received a letter of intent from EPF on April 22, expressing its interest in the land, which will be procured through a land swap deal with the federal government to regenerate the Bukit Jalil National Sports Complex (NSC).
EPF plans to take up a 80% stake in the unit which will own the land, and MRCB is expected to take up the remaining 20%.
Prior to the signing of the agreements, MRCB will provide EPF with a full market study report and a business plan, including a timeline for the development of the exchange land and the agreements will be subject to EPF being satisfied with the results of their due diligence.
Among the conditions of the deal is that the approved plot ratio for the development of the Exchange Land 1 will be no less than 1:6.5 and that the piece of land will have a leasehold period of 99 years and subject to the category of "building" and MRCB or any of its related corporations will be appointed the main contractor or project delivery partner in respect of the development of the exchange land.
EPF will pay for the deal in two tranches, RM397 million or on the basis of RM405 per square foot, upon the satisfaction of all conditions set out in the letter of undertaking, and the remaining RM24.5 million or RM25 per square foot payable upon the issuance of the development order.

The exchange land is the first parcel of land that MRCB will receive under the first phase of the RM1.6 billion Bukit Jalil NSC regeneration.
MRCB is to receive three parcels of government land measuring a total of 92.5 acres around the Bukit Jalil area in stages, based on the completion date of the projects that will be carried out in two phases.