Malaysian Resources Corp Bhd (MRCB) is disposing of a 1-acre (4,074 sq.metres) plot of land to Mass Rapid Transit Corp Sdn Bhd (MRT Corp) for RM180 million (RM4,132 psf) due to concerns over its proximity to the construction of the MRT Line 2.
MRCB said its wholly-owned subsidiary OneSentral Park Sdn Bhd was in the initial stage of developing a block of serviced apartments called The Grid at Jalan Kia Peng on the land prior to receiving notice that the alignment of the MRT Line 2 crosses the site directly below the land. The land is located along Jalan Conlay below which the MRT Line 2 is expected to connect the Conlay and Tun Razak Exchange stations.
“In view of the works to be carried out for MRT Line 2, the development at the land would be exposed to higher risk of significant delays and cost overruns. The proposed disposal will allow the MRCB group to avoid any potential risk and unlock value from the early monetisation of the land,” the group said in a filing to Bursa Malaysia.
Title no: PN 52405
Lot no: Lot 20008, Section 63, Town of Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur
Land area: 1-acre (4,074 sq.metres)
Tenure: Leasehold 99-year (expiring on 9 August 2113)
Category of land use: Building
Land price: RM180 mil (RM4,132 psf)
Date of announcement: 17 November 2016
source: Bursa Malaysia, TheEdge