KUALA LUMPUR: Malaysian Resources Corporation Bhd's (MRCB) shares remained flat in the morning session today despite the company announcing a land acquisition deal worth RM83 million.

At 10.30 am, the shares remained unchanged at yesterday's close of RM1.65 with 367,300 shares changing hands.

Kenanga Research in a note today said the acquisition was expected to increase MRCB's gearing level to 1.49 times from 1.45 times currently before going down to 1.27 times, as the company pares down its debt post disposal of Platinum Sentral in Kuala Lumpur Sentral.

Furthermore, it said the development of the land was only expected to have meaningful earnings contributions in the later part of financial year 2015 as the construction works for the residential development were only expected to commence in the first quarter of 2015.

Yesterday, MRCB announced that it had entered into a related party transaction with Besraya Acres Sdn Bhd to acquire three parcels of land in Sungai Buloh, Selangor measuring about 5.73 hectares.

Two out of the three parcels of land will be for residential development comprising 49 units of 2.5 storey terrace houses, 216 condominium units and 30 units of town villas, while the remaining parcel will be developed into a commercial project with over 92,900 sq metres of gross floor area comprising shops, commercial office and serviced apartment.

On outlook, Kenanga Research said it is still expecting a few more major developments in the pipeline that will accrete the company's value namely injecting of other property investment portfolios worth more than RM1 billion into its real estate investment trust.

The research house is also expecting a higher possibility of the company replenishing its order book of about RM1 billion this year driven by building and infrastructure projects.

One of the projects, it said, was Kwasa Damansara whereby MRCB has emerged as one of the frontrunners.

Kenanga Research has maintain "Outperform" on MRCB but revised upwards the target price to RM2.33 from RM2.02 previously.

-- Bernama