Magna Prima to launch 5 projects in Klang Valley

By Sharen Kaur
Published in NST, January 30 2010

PROPERTY developer Magna Prima Bhd (7617)will launch five projects, worth a combined RM1.2 billion, in the Klang Valley in the second half of the year.


Its chief executive officer Yoong Nim Chee expressed optimism of a pick-up in the property market and said the projects would be launched starting June or July.

They include the much-anticipated Magna Prima City, a RM400 million integrated development in Jalan Kuching, Kuala Lumpur, which will feature serviced apartments, retail mall and shop-offices.

"I believe the market is going to be stable. There is underlying strength in the market. We have people with money to spend. For us, it is going to be a very eventful year," Yoong told Business Times after the company's extraordinary general meeting in Batu Caves, Selangor, yesterday.

Magna Prima has formulated a five-year business plan, which will be assessed yearly.
"One of the strategies is to focus on high-value, low-residue developments and buy pockets of land, instead of huge landbank, so that holding cost is reduced. We want to sell everything we build for quick turnover," Yoong said.

Another project, costing RM100 million, will be developed in Section 16 in Shah Alam, Selangor. It will comprise a gated and guarded residential community of 300 terraced houses on about 7ha.

"This is a low-density development which we will launch in phases. We are going for terraced houses to maximise the land value," Yoong said.

Magna Prima is planning a similar residential project in Selayang, Selangor, which is expected to generate some RM250 million gross development value. It is buying 11ha for RM57 million for the project.

It also plans to launch a gated development in Bukit Jalil, Kuala Lumpur, of terraced and semi-detached houses, worth RM80 million. However, the project is pending completion of a sale and purchase agreement with Ho Hup Construction Sdn Bhd.

In Section 5 in Petaling Jaya, Selangor, Magna Prima will launch a lifestyle commercial project, valued at around RM300 million. There will be four- to five-storey shoplots, a boulevard and a neighbourhood mall.

The development, which may begin late this year or early next year, will take up about 3ha freehold land along Jalan Gasing, which the company bought for RM48.5 million.

"With all the projects lined up and the completion of existing ones, we hope to surpass our 2008 net profit and revenue this year," Yoong said.

In the nine months to September 30 2009, Magna Prima posted a net profit of RM6.4 million on revenue of RM179.3 million. In 2008, it made RM26.9 million net profit on RM280.6 million revenue.

-ENDS