MRCB Acquires EPF’s 80% Stake in Bukit Jalil Sentral: A New Chapter for KL’s RM21b Development

Malaysian Resources Corp Bhd (MRCB) has announced it will acquire the Employees Provident Fund’s (EPF) 80% stake in Bukit Jalil Sentral Property Sdn Bhd (BJSP) for RM1.58 billion in cash, giving it full ownership of one of Kuala Lumpur’s largest upcoming mixed-use projects.

The deal not only reshapes the partnership between MRCB and EPF but also redefines the future of the 76.14-acre Bukit Jalil Sentral development, which carries an estimated gross development value (GDV) of RM21 billion.

Deal Overview

Stake Acquired: 80% in BJSP from EPF’s unit Tanjung Wibawa Sdn Bhd (TWSB).
Purchase Price: RM1.58 billion (based on BJSP’s net asset value of RM1.4 billion).
Additional Advances: MRCB’s unit Rukun Juang Sdn Bhd may assume RM69.21 million in shareholder advances from EPF.
Financing: Combination of internal funds and loans (potential gearing to rise from 0.2x to 0.6x if RM1.32 billion debt is taken).
Profit Impact: Expected to add 2.37 sen per share to MRCB’s profit.

The transaction is classified as a related-party deal, as EPF owns about 36% of MRCB. Shareholder approval will be required, with AmInvestment Bank Bhd acting as principal adviser.

Bukit Jalil Sentral: Project Background

The Bukit Jalil Sentral site consists of three parcels of land:

97,720 sq m – recreational park.
37,320 sq m and 173,800 sq m – vacant plots earmarked for development.

These lands were transferred to BJSP by the Malaysian government in April 2018 as settlement for MRCB’s upgrading works on the National Sports Complex, Bukit Jalil.

The original masterplan, approved in November 2020, envisioned a massive mixed-use commercial and residential precinct akin to MRCB’s flagship KL Sentral project. However, revisions discussed between MRCB and EPF failed to reach consensus, prompting MRCB to buy out its partner.

Strategic Vision and MRANTI Link

MRCB stated that the land could become an “enlarged hub” complementing the Malaysian Research Accelerator for Technology & Innovation (MRANTI) Park, located just 1.9 km away.

Potential development themes include:

Hyperscale data centres, leveraging MRANTI’s focus on technology and innovation.
Integrated commercial, residential, and lifestyle components.
Green and sustainable urban features.

Feasibility and environmental studies will be conducted before finalising plans, but the opportunity to connect Bukit Jalil Sentral with MRANTI Park suggests a tech-driven township model.

Financial Context

EPF’s initial cost of investment in BJSP was RM1.14 billion, while the agreed disposal price of RM1.58 billion reflects both the land’s value and BJSP’s NAV.

For MRCB:

Gaining 100% control allows strategic flexibility in revising development plans.
Debt levels will increase but remain manageable given MRCB’s RM21b GDV pipeline.
Long-term value creation is expected through land appreciation and project execution.

MRCB’s Track Record: From KL Sentral to Bukit Jalil

MRCB is no stranger to large-scale, transit-oriented and mixed-use developments:

KL Sentral: A 72-acre integrated hub featuring offices, residences, hotels, and Malaysia’s main rail station. It is widely regarded as MRCB’s flagship success story.
PJ Sentral & Kwasa Sentral: Ongoing township and urban regeneration projects.

The Bukit Jalil Sentral project now positions MRCB to replicate its KL Sentral success in southern Kuala Lumpur, leveraging connectivity, mixed-use planning, and long-term phasing.

Implications for KL Property Market

1. Bukit Jalil as a Growth Corridor

Bukit Jalil has emerged as one of Kuala Lumpur’s most dynamic residential and commercial zones, fuelled by:

National Stadium and Sports Complex.
Axiata Arena and other event facilities.
Pavilion Bukit Jalil Mall, one of the city’s newest retail landmarks.
Transit access via LRT Sri Petaling Line and highways (MEX, KESAS, Bukit Jalil Highway).

With Bukit Jalil Sentral, the area’s profile will further rise, making it a southern urban hub complementing Bangsar South and KL Sentral.

2. Investment in Data Centre-Linked Property

The mention of hyperscale data centres signals potential synergy with Malaysia’s digital economy ambitions. For KL property investors, this suggests:

Stronger commercial property demand from tech firms and supporting industries.
Higher residential demand for knowledge workers living near Bukit Jalil.

3. Property Value Appreciation

Mixed-use developments typically uplift surrounding land and residential prices. Bukit Jalil Sentral’s scale and branding under MRCB can anchor value appreciation, benefiting nearby condominiums, serviced apartments, and landed homes.

Challenges Ahead

Despite its promise, the project faces hurdles:

High GDC: With RM21 billion GDV, financing and phasing will be critical.
Market Absorption: Balancing supply of offices, retail, and residences in an already competitive KL market.
Execution Risks: Legal, environmental, and construction risks could affect timelines.
Debt Management: Rising gearing must be carefully managed to avoid financial strain.

Conclusion

MRCB’s RM1.58 billion acquisition of EPF’s 80% stake in Bukit Jalil Sentral is a defining move, giving it full control of a 76-acre, RM21 billion megaproject. While the buyout ends a chapter of joint-venture negotiations, it opens the door for a revitalised vision potentially aligned with Malaysia’s digital economy through MRANTI Park and data centre integration.

For the KL property market, Bukit Jalil Sentral represents more than another township — it is a transformational hub that could reshape the southern corridor of Kuala Lumpur, much like KL Sentral did for Brickfields two decades ago.

Investors should watch closely as MRCB revises plans, balancing between sustainable development, data-driven opportunities, and urban lifestyle integration. If executed well, Bukit Jalil Sentral could become one of Malaysia’s most valuable urban addresses in the next decade.