MRCB’s RM1.58b Buyout of Bukit Jalil Sentral Stake from EPF Judged ‘Fair and Reasonable’

KUALA LUMPUR (Nov 25) — Independent adviser Kenanga Investment Bank Bhd has recommended that non-interested shareholders of Malaysian Resources Corp Bhd (MRCB) vote in favour of the group’s proposed RM1.58 billion cash acquisition of the remaining 80% stake in Bukit Jalil Sentral Property Sdn Bhd (BJSP) from the Employees Provident Fund (EPF).

In an independent advice circular submitted to Bursa Malaysia, Kenanga IB concluded that the proposed consideration is “fair and reasonable” and does not prejudice minority shareholders.

Strategic 76-Acre Bukit Jalil Development Back Under MRCB Control

BJSP is the master developer of the 76.14-acre Bukit Jalil Sentral project. MRCB moved to fully acquire the stake after both parties were unable to agree on revisions to the development plan.

The three parcels involved comprise:

• a 97,720 sq m recreational park, and

• two vacant commercial parcels of 37,320 sq m and 173,800 sq m.

Once completed, BJSP will become a wholly owned subsidiary of MRCB, giving the group full autonomy to redesign, reposition and fully monetise the entire township development — a move seen as strengthening MRCB’s long-term landbank within the broader commercial property in KL market.

The acquisition also includes 1.13 billion redeemable preference shares (RPS-A) that carry a 7% annual dividend in perpetuity.

Purchase Price Supported by Multiple Valuation Benchmarks

Kenanga IB based its conclusion on several reference points:

• RM2.06 billion land valuation by IVPS Property Consultant (as at July 10)

• BJSP’s unaudited NAV of RM1.4 billion (as at June 30)

• Principal plus accrued dividends from RPS-A up to July 10

• KPMG Corporate Advisory’s valuation of RM1.57 billion using adjusted NAV

Kenanga said the consideration falls within “a reasonable valuation band” when assessed against independent valuation methodologies.

Prime Connectivity and Proximity to Bukit Jalil’s Innovation Cluster

A key factor highlighted by Kenanga IB is the strategic location of the parcels, positioned just 1.9km from MRANTI Park, one of Malaysia’s most important technology and innovation hubs and a rapidly evolving hotspot for data centre and digital infrastructure development.

The lands also benefit from excellent connectivity, served by:

• Sri Petaling LRT station

• Bukit Jalil LRT station

• Sungai Besi MRT station

• Major highways including MEX, KESAS and KL-Seremban routes

This makes Bukit Jalil an increasingly competitive location for transit-oriented offices and mixed-use schemes, complementing market demand for office space in Bukit Jalil, as well as broader interest in surrounding industrial and logistics corridors such as industrial land in Selangor, factory assets in Puchong, and industrial property options in the Subang area.

Supportive Market Outlook Strengthens the Case

Kenanga IB said the favourable outlook for Malaysia’s property sector — supported by infrastructure upgrades, stronger developer pipelines, and high demand for urban-connected projects — further bolsters the rationale for MRCB’s strategic buyout.

Shareholders are set to vote on the proposal at the group’s extraordinary general meeting on Dec 18.