MRCB's Cyberjaya land sale set to cut gearing, save RM17.5mil a year
KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) is expected to book an estimated RM81 million gain from the proposed RM419 million sale of land in Cyberjaya, with most of the proceeds earmarked for debt repayment.
Malaysian Resources Corporation Bhd (MRCB) anticipates a RM81 million profit from the upcoming sale of land in Cyberjaya for RM419 million, with proceeds primarily allocated to debt repayment. Hong Leong Investment Bank Bhd (HLIB) predicts the transaction will reduce MRCB's net gearing to 0.31 times from 0.41 times, saving RM17.5 million annually at a 5% interest rate.
MRCB recently agreed to sell seven parcels of land to Digital Cosmos Malaysia Sdn Bhd, acquired from Cyberview Sdn Bhd in March 2025 for RM287.8 million. The higher sale price is attributed to the rising Cyberjaya land values, especially for sites capable of accommodating data centres with sufficient power capacity. The deal is scheduled for completion by Q4 2027, contingent on regulatory approvals and the confirmation of at least 182 megawatts of power capacity for the data centre development.
HLIB believes the sale will bolster MRCB's balance sheet, providing financial flexibility as the company manages an RM8 billion construction order book and explores data centre-related investments. However, HLIB warns that the interest cost savings might be temporary due to MRCB's substantial funding needs. The group is currently working on significant projects, including a RM2.1 billion data centre in Bukit Jalil, which may necessitate further borrowing.
Despite this, HLIB keeps its earnings forecasts and Buy rating for MRCB, with an unchanged target price of 50 sen, citing stronger construction earnings and developments related to the Mass Rapid Transit 3 project as potential positive factors.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
