MRCB Shares Up 1.44 Pct On Cyberjaya Land Disposal Proposal

KUALA LUMPUR, Aug 10 (Bernama) -- Malaysian Resources Corporation Bhd’s share price rose 1.44 per cent in the early session today after it announced an agreement to dispose of its Cyberjaya land.

Its indirect subsidiary, Subang Sentral Sdn Bhd, has agreed to dispose of 14.83 hectares (36.66 acres) to Digital Cosmos Malaysia Sdn Bhd, a wholly owned subsidiary of Digital Cosmos (S) Pte Ltd, for RM419.05 million.

 The original land size, which will subsequently be held under a single document of title, will measure 18.53 hectares (45.81 acres) after the completion of the surrender and re-alienation of the land.

As at 10.33 am, MRCB’s share price inched up half a sen to 35 sen, with 19.09 million shares traded.

MBSB Investment Bank Bhd said it viewed the disposal and the 65-megawatt (MW) Bukit Jalil data centre (DC) as part of MRCB’s dual-pronged strategy to optimise its 496.95-hectare (1,228-acre) landbank, which has an undeveloped gross development value (GDV) of RM23.3 billion.

The strategy involves monetising selected land while retaining strategic assets to generate recurring income.

“Near-term opportunities could continue to come from Bukit Jalil, where another 27.11 hectares (67 acres) across two plots provide room for future DC expansion beyond the initial 65 MW development.

“The 27.31-hectare (67.5 acres) Pulai land in Johor (RM770 million undeveloped GDV) is also worth monitoring given its proximity to established DC clusters, albeit as a medium-term option,” it said in a note.

While MRCB’s current RM10 billion tender book spans transportation, water, flood mitigation, power transmission and industrial infrastructure, the research house sees potential for DC construction jobs to enter the pipeline. 

MBSB is maintaining its “Buy” call with a target price of 40 sen.

-- BERNAMA