Its chief executive officer, Lim Ching Choy (pix) said, it is the primary objective and business model of the group to target projects in property hotspots with high densities and populations, particularly by purchasing land with development orders.
“We are very cautious with the property cycle and are going for [pocket-sized] projects as we do not have to incur heavy working capital or infrastructure costs.
Developing on approved land allows us to lock-in sales quickly and turn around quickly, probably within six months,” he told reporters after the group’s EGM yesterday.
He added that the group would also be focusing on residential and commercial highrise developments, targeted at the middle- to upper-income groups, as this is a growing market segment.
“All of our projects are located in the Klang Valley as we feel it is still strong in terms of economic growth, population, earning capacity, purchasing power and housing needs,” he said, adding that the area also promised good returns for investors.
Magna Prima received its shareholders’ approval to acquire 10.23 acres of freehold land for about RM57.9 million located next to Jalan Kuching at the intersection between Jalan Kuching, Jalan Ipoh and Jalan Kepong.
The land is for a mixed development comprising 20 units of 3-storey shops, two blocks of 200 signature offices, a 15- storey office block, and two blocks of 800 serviced-apartment units. It would also have a hypermarket occupying the lowerground and ground floors, five levels
dedicated to retail shops, departmental stores, a cineplex and a bowling centre as well as three levels of underground parking with approximately 5,000 bays.
The project with a GDV of RM735 million is expected to be launched in the first half of this year and scheduled for completion by 2012. “The company intends to sell the serviced apartments, shop offices and commercial units while retaining the retail mall for recurring rental income,”
Lim said.
Magna Prima’s other new mixed development located on a 4.78-acre tract in Section 13, Shah Alam, is targeted to kick off by the first quarter of this year and would comprise 378 apartment units and a 15-storey office building with amenities.
The project has a GDV of RM110 million. The group’s other ongoing projects include Magnaville in Selayang, The Avare near KLCC, Dataran Otomobil in Shah Alam, and Metro Prima, its maiden joint venture project with Kuala Lumpur City Hall, in Kepong. It has unbilled sales amounting to RM300 million, which would last the group for the next two years.
By theSun (by Yap Yew Jin)
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