By Khairul Khalid
Imran Salim
Property developer MRCB will not have any issues funding the RM1.6 billion National Sports Complex (NSC) refurbishment project, according to the company’s executive director Mohd Imran Mohamad Salim.
“Cash outlay will not be a problem. We can finance the project with internal funds. Many of our current jobs are already at the end of their project cycles,” said Imran at a media briefing today.
Last week, the federal government awarded the RM1.6 billion land swap deal for the regeneration of the NSC to MRCB. Instead of being paid cash, MRCB will be receiving 93 acres of leasehold land in Bukit Jalil that it plans to develop commercially in four to five years’ time.
The NSC deal is a privatisation agreement between MRCB’s 85%-owned subsidiary Rukun Juang (RJSB) and the Youth and Sports Ministry. The first phase of the project is being fast tracked for completion in time for the 29th SEA Games in 2017.
Phase one of the project includes the upgrading of facilities at NSC for RM499 million and scheduled between January 2016 and June 2017.
Phase two of the project, which will run from January 2018 to December 2020, involves the construction of a new sports complex, sports mall, convention centre, multi-storey car park, hostel, sports museum, library and youth park for RM1.1 billion.
“We won’t be making any profit on the NSC refurbishment job. It’s a value for value deal. MRCB will only make money when we receive and develop the 93 acres, once we have fulfilled our obligations to the government.
“Let’s finish the NSC job first. It is an important national project. The land transfer will take time, maybe around five years. We are familiar with the process. It shouldn’t be a problem. We are land banking with this deal and can afford to wait,” said Imran.
The MRCB executive director said that the 93 acres are valued at around 5% premium of current market valuation.
Imran said that they are still reviewing their development plans for the 93 acres and will make necessary adjustments according to market conditions. It will have an estimated gross development value of RM14.6 billion over 16 years from 2018.
He also cautioned that the NSC refurbishment work won’t be an easy job, but is confident that MRCB will do a good job in revitalising the area.
“RM1.6 billion sounds like a lot but it’s not just a paint job. The stadiums are debilitated and in poor condition. The NSC is 17 years old and outdated. Most of the facilities and equipment have reached the end of their life cycles. We won’t be starting from scratch but we need to upgrade the whole structure to meet international standards and these include the facade, wiring, lighting, seats, piping, walkways, escalators, toilets, water pumps and others,” said Imran.
Phase two of the project will also include a retractable roof and retractable seats for the stadium. Imran said that by adding commercial and environmental elements to the stadiums and its vicinity, more people will be attracted to visit the place.
“The idea is to generate more income for the stadiums and make them more self-sustaining financially.
MRCB has appointed international stadium architecture firm, Populous, as the designer for the project. The company has worked on more than 2,000 projects worth US$30 billion and is a specialist at creating sporting facilities that draw people and communities together.
Among its designs are 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 also currently working on the design of a new stadium for Tottenham Hotspur FC in London.
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