Business

Wednesday June 3, 2009

MRCB gearing still manageable


KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) sees its current gearing ratio of 2.5 times or RM1.6bil as still manageable, said group managing director Shahril Ridza Ridzuan.

He said once the company’s projects were developed and sold, its gearing level would drop back again.

“Our main projects are currently the development of office buildings around KL Sentral apart from the development of Eastern Dispersal Link in Johor Baru and also the development of Bandar Seri Iskandar in Perak.

Shahril Ridza Ridzuan

“Though there is an increase of gearing ratio to 2.5 times now, we believe we could get the break even in our financials when the projects are completed and sold,” he said yesterday after the company AGM here.

Shahril said the company’s current order book stood at RM2bil mostly from development projects in KL Sentral and with some other upcoming projects, the orderbook for this year could reach RM4bil to RM5bil, enough to last for three years.

“We still have about 20 acres in KL Sentral for development that could last till 2016 and the group’s land bank is currently 4,000 acres.

“We also may pursue overseas projects to expand our business,” Shahril said.

He added that although the property market was currently slow, he believed this was the best time to continue with project development as the cost of materials was currently low.

“Apart from that, our strategy before starting any office building development is to find tenants first. By this, we are reducing the risk of not filling the office space as we already have the tenants,” Shahril said.


MRCB : [Stock Watch] [News]

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