KUALA LUMPUR – Malaysian Resources Corporation Bhd’s (MRCB) 70% owned subsidiary Kwasa Sentral Sdn Bhd (KSSB) has entered into a tenancy agreement (TA) with KD District Cooling System Sdn Bhd (KDDCS).
In a filing with Bursa Malaysia today, MRCB said the agreement was signed in respect of “demised premises” in Bangunan Taman Kwasa Sentral, Persiaran Kwasa Sentral 3, Pusat Bandar Kwasa Damansara, Shah Alam, Selangor.
The agreement would be for an initial term of three years with an option to renew for seven subsequent terms of three years each and one succeeding term of one year with an estimated total of RM62.19 million (the transaction).
KDDCS is a wholly-owned subsidiary of MRCB DCS Holding Sdn Bhd, which in turn is a wholly-owned subsidiary of MRCB.
It is principally involved in supplying chilled water to commercial buildings in Plot MX1 and Plot C8 of Kwasa Sentral Development.
KDDCS has signed a chilled water supply agreement with the first customer, which is Kwasa Utama Sdn Bhd to supply chilled water to Menara KWSP at Plot C8.
Subsequently, KDDCS would also supply chilled water to other commercial buildings which are to be constructed progressively.
KSSB is the owner of the building to be developed as a utility block which comprises of central park, convention centre, surau, Tenaga Nasional Bhd substations, district cooling system plants and a car park.
It would then rent the DCS plant to KDDCS to install and run the DCS equipment to supply chilled water.
Meanwhile, MRCB said the transaction is not expected to have any material effect on the earnings and earnings per share of the company for the financial year ending December 31, 2022.
The transaction also would not have any effect on the issued and paid-up share capital of the company as well as the substantial shareholders’ shareholding in the company as it does not involve any issuance of shares.
Barring any unforeseen circumstances, the TA would span over 25 years commencing on December 15, 2022, for Phase 1. – Bernama, December 13, 2022
