Higher revenue recognition from 1060 Carnegie and Sentral Suites, says MRCB

Malaysian Resources Corp Bhd (MRCB) says its 1060 Carnegie project in Melbourne, Australia, and Sentral Suites in KL Sentral, Kuala Lumpur contributed to the increase in the group's revenue in the first nine months of 2020.

1060 Carnegie, MRCB's second residential development in Melbourne, Australia, is 10-storey high and has a gross development value of A$107 million.

The first project by MRCB in Melbourne is The Easton Burwood apartments, completed in 2017.

1060 Carnegie has 173 units of apartments with built-ups from 500 sq ft. The construction was completed in December 2019.

Sentral Suites features one to three-bedroom units and dual-key units ranging from 650 sq ft to 1,166 sq ft.

MRCB, the developer of the iconic RM18 billion KL Sentral project said that in the nine months ended September 30, 2020, it recorded revenue of RM890.6 million and a pre-tax loss of RM187.5 million.

The property development and investment division recorded a 32 per cent increase in revenue to RM489.4 million, compared to RM371.4 million in the corresponding period in 2019.

MRCB told Bursa Malaysia that the increase in revenue was mainly due to revenue recognition from 1060 Carnegie, upon the financial settlement and handover of purchased units, and construction progress at Sentral Suites.

The division's operating profit, however, fell 51 per cent to RM34.3 million in the nine-month period, compared to RM69.8 million in the corresponding period in 2019.

MRCB said the division overall sold RM126 million worth of properties in the first nine months of 2020 and had unbilled property sales of RM1.2 billion.

The group's 27.94 per cent equity-owned MRCB-Quill REIT and associated company, MRCB Quill Management Sdn Bhd, contributed a combined net profit of RM12.1 million compared to RM12.4 million in the corresponding period last year, it said.

MRCB-Quill REIT owns five buildings in Cyberjaya, four in Kuala Lumpur, and one in Penang. They are valued at RM2.14 billion collectively, as at December 31, 2019, and the occupancy is more than 90 per cent.

MRCB's property development revenues are underpinned by its 323-acre urban land bank which has an estimated GDV of RM32 billion.

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