MRCB Secures RM6.25 Billion Ipoh Sentral Project, Analysts Expect Long-Term Growth
Malaysian Resources Corporation Bhd (KL:MRCB) has won the development rights for the RM6.25 billion Ipoh Sentral project, a major transit-oriented development (TOD) that will be executed in multiple phases over 20 years. The project will increase MRCB’s total remaining gross development value (GDV) by 19% to RM38.6 billion, according to analysts at Hong Leong Investment Bank (HLIB).
The partnership with Ipoh Sentral Sdn Bhd, a 50:50 joint venture between Railway Assets Corporation and Perak state-owned Silver Smart Sdn Bhd, aims to revitalise central Ipoh with a mix of residential, commercial, and community facilities.
Long-Term Development with Manageable Costs
Analysts at HLIB highlight that MRCB’s cost exposure for the project is under 10% of GDV, making it financially manageable. The payment structure—comprising cash, profit-sharing, and land swaps—further reduces pressure on MRCB’s balance sheet.
“Although we view this development positively, we take note of the extended development period,” said HLIB analysts, referring to the 20-year project timeline.
Given the scale of the project, earnings contribution is only expected from 2026 onwards, with revenue flowing in as phases are completed.
Ipoh Sentral Strengthens MRCB’s Transit-Oriented Portfolio
MRCB has a strong track record in TOD projects, making Ipoh Sentral a natural fit within its portfolio.
Key Advantages for MRCB:
✅ Largest TOD in Central Ipoh – Positioned as a future economic hub.
✅ Strategic Partnership – Collaboration with state and federal entities enhances project credibility.
✅ Proven Expertise – Leverages MRCB’s track record in transport-linked developments.
Analysts at MIDF Amanah Investment Bank believe this project aligns with MRCB’s transit-oriented development expertise, particularly after MRCB exited the Berjaya-led bid for the Kuala Lumpur-Singapore High-Speed Rail (HSR) project.
“The decision to focus on Ipoh Sentral strengthens MRCB’s positioning in transit-integrated developments,” said MIDF analysts.
Potential Impact on MRCB’s Financials
While the long-term nature of the project means immediate earnings impact is limited, MRCB stands to benefit from consistent revenue generation over two decades.
💰 Expected Revenue Contributions:
- Initial contributions from 2026 onwards.
- Gradual earnings growth as different phases are developed and sold.
The Ipoh Sentral project, along with MRCB’s Ipoh Raya Integrated Park, positions the company to play a key role in Perak’s economic transformation.
MRCB’s Market Position and Future Outlook
With this new contract, MRCB further cements its role as Malaysia’s leading transit-oriented developer. Investors can expect steady, long-term growth, albeit with an extended revenue gestation period.
📈 Investor Takeaways:
✅ GDV Boost – Adds RM6.25 billion to MRCB’s pipeline.
✅ Low Cost Exposure – Development rights cost less than 10% of GDV.
✅ Revenue from 2026 – Multi-phase execution will lead to long-term earnings stability.
As MRCB continues to expand its TOD portfolio, the Ipoh Sentral project is a strategic win, reinforcing its expertise in rail-integrated urban developments.
