MALAYSIAN Resources Corp Bhd (MRCB) is said to be targeting an 11.6ha government land adjacent to its PJ Sentral project in Petaling Jaya under a possible privatisation deal.
The plot, home to the former Hotel Singgahsana, Petaling Jaya Magistrate Court and the Chemistry Department, has a potential gross development value (GDV) of more than RM7 billion.
Business Times understands that the land, owned by the Department of Director General of Lands and Mines under the Natural Resources and Environment Ministry, is valued at more than RM600 million, or over RM450 per square feet.
A privatisation proposal for that piece of land was submited by a consortium led by Nusa Gapurna Development (NGD) Sdn Bhd about four years ago, although a deal did not materialise.
NGD — a 60:40 partnership between Gapurna Sdn Bhd and the Employees Provident Fund (EPF) — had a 70 per cent interest in the RM3 billion PJ Sentral mixed development, but was involved in an asset injection exercise with MRCB.
The Selangor State Development Corp (PKNS) had owned the remaining 30 per cent.
“MRCB, which now owns 100 per cent of PJ Sentral after an out-of- court settlement with PKNS recently, wants to take over the 11.6ha land under a privatisation deal, with the government getting payments based on the project value.
“The idea is to have a bigger development that can generate higher GDV than the current estimates," sources said.
MRCB, under the leadership of Tan Sri Mohamad Salim Fateh Din, and NGD, a company that he controls, recently reached a settlement agreement with PKNS Holdings Sdn Bhd over the sale of PJ Sentral Development Sdn Bhd, the owner of PJ Sentral.
In March, PKNS Holdings had filed an injunction to stop MRCB and NGD from completing their multi-million-ringgit merger plans, following MRCB’s proposed acquisition of the 70 per cent equity in PJ Sentral Development from NGD for nearly RM200 million.
The settlement agreement saw MRCB paying RM85.3 million cash for PKNS’ 30 per cent stake in PJ Sentral Development.
MRCB is currently involved in the RM11 billion KL Sentral transport hub in Brickfields, Kuala Lumpur. Its other ongoing projects are Puncak Iskandar in Johor and Taman Kajang Utama in Kajang, Selangor.