KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) will redevelop the Bukit Jalil National Sports Complex into the iconic Kuala Lumpur Sports City through its subsidiary, Rukun Juang Sdn Bhd (RJSB).
In its filing to Bursa Malaysia yesterday, MRCB said the total project cost will be RM1.6 billion.
In return, MRCB will be repaid by the government with three parcels of leasehold land nearby, totalling 37.4ha.
“The existing facilities at Bukit Jalil were built more than 17 years ago, and Malaysia needs a sporting venue that showcases the country and its athletes.
“The new sports city will be a catalyst to inspire Malaysia to become a sporting nation,” said MRCB group managing director Tan Sri Mohamad Salim Fateh Din.
MRCB said RJSB’s proposal was chosen as “the best overall development concept” by the Federal Government after 11 companies submitted proposals in an open national tender process undertaken by the Public-Private Partnership Unit.
The privatisation agreement was signed in Putrajaya by Lands and Mines Department director-general Datuk Dr Sallehuddin Ishak, RJSB director Kwan Joon Hoe and Youth and Sports Ministry secretary-general Datuk Jamil Salleh.
The proposed privatisation is conditional upon MRCB obtaining its shareholders’ approval at an extraordinary general meeting to be convened.
MRCB said it will bear the cost of the transfer of the three parcels of land near the National Sports Complex to RJSB.
The contract sum represents a premium of about RM32 million, or two per cent over the market value of the land parcels.
MRCB deems this sum as reasonable because the parcels present it with an opportunity to undertake a mixed-development in a fast-developing suburban area of Kuala Lumpur.
RJSB is an 85 per cent-owned subsidiary of MRCB Land Sdn Bhd, which in turn is a wholly-owned unit of MRCB. The remainder is owned by Rasma Contractors.
MRCB group managing director Tan Sri Mohd Salim Fateh Din and Employees Provident Fund hold an 85 per cent indirect stake in RJSB.
Former federal territories and urban wellbeing minister and Lembah Pantai Umno division chief Datuk Seri Raja Nong Chik Raja Zainal Abidin and his wife, Datuk Seri Nafesah Raja Nong Chik Abidin, also hold a 15 per cent indirect stake in RJSB.
The first phase of redevelopment will see the Bukit Jalil National Stadium ready to host the 2017 Southeast Asia (SEA) Games.
Once this is completed and the SEA Games are over, RJSB will commence Phase Two in early 2018.
RJSB has appointed international stadium experts Populous as the designer for the project.
Populous’ previous designs included the Yankee Stadium, the 2012 London Olympic Stadium, South Korea’s Incheon 2014 Asian Games Stadium and the Etihad Stadium expansion project in Manchester.
It is currently working on the design of a new stadium for Tottenham Hotspur FC in North London.