MRCB, TH Properties to jointly develop Setapak land

26 December, PETALING JAYA – Malaysian Resources Corp Bhd (MRCB) will be partnering Lembaga Tabung Haji’s unit TH Properties Sdn Bhd (THP) to develop three parcels of land belonging to the former’s wholly owned subsidiary, 59INC Sdn Bhd, in Setapak, Kuala Lumpur.

MRCB said its interest in the land measuring about 111,195 square metres in Setapak and its future development will be diluted as a result of TH Properties’ participation in 59INC.

The two parties have concurrently entered into a share sale agreement and subscription and shareholders’ agreement with THP for the disposal of MRCB’s 40% equity interest in 59INC for RM100.14million while THP on another note has agreed to subscribe for 500,000 new shares in 59INC.

Following the completion of both agreements, THP will hold 70% equity interest in 591NC while the remaining 30% will be held by MRCB.

The proposed joint venture will allow MRCB to carry out multiple property development projects concurrently and at the same time have the flexibility to reallocate its cash flows and resources efficiently among its projects.

“In any case, MRCB will continue to maintain a share in the future development profits from the proposed development, based on its effective shareholding of 30% in 59INC,” it said.

MRCB rose 5.56% to RM1.14 with 21.46 million shares done today.