Malaysian Resources Corporation Berhad (MRCB), through its wholly owned subsidiary Country Annexe Sdn Bhd (CASB), has signed a joint venture development agreement with Ipoh Sentral Sdn Bhd (ISSB) for the development of the Ipoh Sentral project in Perak.
The agreement, announced via a filing with Bursa Malaysia, establishes the partnership for a proposed mixed-use project structured around a transit-oriented development (TOD) model. The development is set to be located on two parcels of leasehold land with a combined area of 296,727 square metres, currently being transferred from Railway Assets Corporation to its wholly owned unit, Railway Assets Holding Sdn Bhd.
Under the terms of the agreement, CASB will act as the master developer, responsible for initiating the planning and design phases, including the submission of the development’s masterplan to the relevant authorities. The project, excluding a designated cultural zone, has an estimated gross development value (GDV) of RM6.25 billion and a gross development cost (GDC) of RM5.62 billion.
As part of the arrangement, CASB will make a consideration payment to ISSB of up to RM348 million, comprising a guaranteed minimum payment of RM198 million. The payment will be made over the course of the 20-year development through a combination of cash and in-kind assets.
MRCB stated that the venture aligns with its long-term strategy to expand its land bank and strengthen its leadership in the TOD segment. The company highlighted that the Ipoh Sentral development is expected to generate recurring income throughout its duration and further demonstrate MRCB’s expertise in property development, engineering and construction.
The group noted that both the commencement and completion timelines of the development remain undetermined, pending submission and approval of the full development plan by the relevant authorities.
-The Star
