MRCB's property turnover to exceed 50 per cent by next year

2010/02/09

KUALA LUMPUR, Feb 9 (Bernama) -- Malaysian Resources Corporation Bhd (MRCB) expects turnover from its property division to exceed 50 per cent by next year as the construction of KL Sentral project gains momentum. Saying that the property turnover to group's profits was between 30 and 40 per cent, OSK Research said the on-going projects in KL Sentral was progressing as planned with some ahead of schedule.

"Other than the on-going projects and an improving outlook for the property sector, MRCB is expected to launch its luxury condominium project later this year with an estimated gross development value (GDV) of more than RM800 million," it said.

The research house said MRCB has indicated that its joint venture partner, CMY Capital Sdn Bhd, had reaffirmed its commitment to kick-start the St. Regis Hotel & Residences project soon with an estimated GDV of RM1.5 billion.

In order to continue its legacy in the property sector, OSK Research said MRCB was eyeing several land parcels belonging to the Federal government as part of its landbank replenishment strategy.

It said the company's recent rights issue could be an indication that MRCB was close to sealing the deal.

"Although there is no firm timeframe on the deal, we believe the potential land acquisition could be a positive catalyst for the stock price," the research house said.

MRCB had hinted earlier it may acquire small parcels of federal land in the Kuala Lumpur city centre including the Brickfields area.

As at mid-day MRCB was traded flat at RM1.31.
-- BERNAMA