KUALA LUMPUR (Aug 15): Property developer Magna Prima Bhd has plans to sell off some “prime assets” in an effort to “reduce its gearing so that it is able to sustain its business in the current challenging environment”, according to a recent report by The Edge Malaysia.
A Magna Prima official revealed to the publication that: “We are managing our day-to-day operations as a property developer and servicing our debt. We do not expect any other company [in the group] to go under receivership at this point of time.”
A wholly-owned subsidiary of Magna Prima, Twinicon, owns the former SJK (C) Lai Meng land measuring 2.59 acres in Jalan Ampang.
Another subsidiary, Everhall, owns a parcel of land measuring 246,189 sq ft in Mukim of Batu, Kuala Lumpur valued at RM143.6 million.
The same report also said that the company also owns 5.25 acres in Sultan Abdul Aziz Shah Golf and Country Club “parked under Magna City Shah Alam Sdn Bhd” and 6.9 acres near Section 5 in Petaling Jaya under 33 Sentral Park Sdn Bhd.
“Magna Prima is willing to dispose of its prime land if the price is right,” said the same official.
Meanwhile, another Magna Prima subsidiary Magna Ecocity Sdn Bhd owns a 20-acre parcel in Seksyen 15, Bandar Shah Alam, Selangor.
Earlier reports showed that Magna Prima bought the land back in 2012 from PCM Bina Sdn Bhd for RM100 million via a combination of cash and shares.
The company has also “obtained a development order for the land to build shop offices, corporate offices, serviced apartments and a shopping complex”.
The Edge’s report based on “an undated sale document by real estate agent JLL” stated that “the 871,200 sq ft parcel is located next to Shah Alam Autocity and near Magna Prima’s headquarters” has an asking price is RM191.6 million or RM220 psf.
The land is a leasehold parcel with 63 years remain.
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Read the full report in this week’s The Edge Malaysia