MRCB REIT in five years

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) hopes to establish a real estate investment trust (REIT) in the next five years or so when its property sector has “matured”, says group managing director and chief executive officer Shahril Ridza Ridzuan.

“It's part of our long-term goal and we plan to inject our KL Sentral properties into the REIT once they start earning revenue and giving yields,” he said after the company AGM and EGM yesterday.

The KL Sentral project, to be developed in phases until 2014, comprises corporate office towers and business suites, hotels, condominiums, a mall and an international entertainment and media centre.

MRCB's other operations are building services; engineering, construction and information communications technology intelligent systems; and infrastructure, concessions and environmental conservation.

Shahril said the company was on track to achieving its projected revenue of RM800mil and pre-tax profit of RM60mil for its financial year ending Dec 31, 2007.

“It (financial performance) will be driven mainly by our property and construction divisions,” he said.

On MRCB's overseas ventures, he said the company was looking to step up its operations in the Middle East.

“We are in discussions with various clients in Saudi Arabia,” he said.

Last year, MRCB was awarded two contracts totalling RM400mil to develop a six-star hotel and an office tower in Dubai, which are expected to be completed in late 2008 and late 2007, respectively.

Meanwhile, asked about MRCB negotiating a 70% stake in the concessionaire for the Penang Outer Ring Road project, Shahril said: “At this stage, we are not willing to comment.”

He said however, that MRCB viewed Penang as a “strategic area” for investment and was “always looking” for opportunities there.