KUALA LUMPUR, Sept 8, 2025 — Malaysian Resources Corporation Berhad (MRCB) is moving to consolidate its position in a prime Bukit Jalil land development by acquiring an additional 80% stake in Bukit Jalil Sentral Property Sdn Bhd (BJSP) from the Employees Provident Fund (EPF) for RM1.58 billion. The purchase will bring BJSP entirely under MRCB’s ownership.
In a Bursa filing, MRCB said its wholly-owned subsidiary Rukun Juang Sdn Bhd (RJSB) has entered into an agreement with EPF’s unit Tanjung Wibawa Sdn Bhd to purchase 8 million ordinary shares and 1.13 billion redeemable preference shares—expanding its existing 20% holding to 100% of BJSP. BJSP holds three leasehold commercial land parcels spanning 308,840 sq m in Bukit Jalil, featuring a 99-year tenure through December 2116.
According to an independent valuation by IVPS Property Consultant Sdn Bhd dated 10 July 2025, the land is valued at RM2.06 billion, while KPMG’s adjusted net asset valuation stands at RM1.57 billion. The RM1.58 billion purchase price represents a modest 0.32% premium, underscoring a fair, market-driven valuation.
Strategic Rationale and Financial Impact
MRCB aims to leverage its full ownership to reshape the land’s development direction. The initial BJSP plans dating back to a 2015 privatisation agreement envisioned a mixed-use development comprising offices, hotels, retail, serviced apartments, and residences. However, the project had stalled due to post-pandemic headwinds and escalating costs.
With full control secured, MRCB is reassessing the project, including the potential addition of data centres—an area showing heightened investor interest due to the site’s strategic proximity to the MRANTI tech hub and regional demand for mission-critical infrastructure. Feasibility and environmental studies will precede any fresh development proposals.
Funding for the transaction will be a mix of internal capital and borrowings. If MRCB borrows RM1.32 billion to finance the acquisition and settle EPF’s RM69.2 million shareholder advances, its net borrowing is expected to rise to RM3.58 billion, lifting its gearing ratio from 0.27 to 0.61 times.
On a pro forma basis, the transaction would enhance MRCB’s FY2024 financial metrics: EPS increases from 1.43 sen to 2.37 sen, and net asset value per share rises from RM1.03 to RM1.06.
Governance and Approval Conditions
Given that EPF is both the vendor and a substantial shareholder in MRCB (holding some 36% of the company), the acquisition is classified as a related-party transaction. MRCB has appointed Kenanga Investment Bank as an independent adviser to assess the fairness of the deal. The transaction remains pending regulatory approval, shareholder endorsement via an extraordinary general meeting, and customary consents. Completion is expected by 2Q 2026.
