Magna Prima in JV for JB SoHo project

• To undertake the project, a special purpose vehicle will be established with Twinicon holding a 75% stake and Crest Star holding the remaining 25%.

KUALA LUMPUR (May 23): Property developer Magna Prima Bhd’s (KL:MAGNA) subsidiary Twinicon Sdn Bhd has entered into a joint venture agreement with Crest Star Land Sdn Bhd to jointly develop a small office home office (SoHo) in Johor Bahru.

To undertake the project, a special purpose vehicle will be established with Twinicon holding a 75% stake and Crest Star holding the remaining 25%, Magna Prima said in a bourse filing on Friday.

The SoHo project, sited on a 3,457.5 sq m parcel of land, is located in the township of Johor Bahru.

“Twinicon shall be responsible for the entire development of the development land and shall be fully responsible for the successful implementation of the project throughout the project period,” Magna said.

Upon completion, Crest Star will receive a fixed entitlement of RM26.78 million, while Twinicon retains rights to all project sales and associated proceeds.

The JV company will be managed by a three-member board, comprising two directors nominated by Twinicon and one by Crest Star Land.

After completion and profit distribution, Twinicon is required to transfer its shares in the JV company to Crest Star, thereby relinquishing all interests and directorial appointments.

Shares of Magna Prima closed unchanged at 55 sen on Friday, valuing the company at RM220.81 million.

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