Magna Prima to acquire residential project in Australia

KUALA LUMPUR: In a move to grow its business overseas, Magna Prima Bhd is acquiring a residential development in Melbourne, Australia for A$26 million (about RM84 million).

Magna Prima via its wholly-owned subsidiary, Magna Prima Australia Pty Ltd has entered into a memorandum of understanding (MOU) with Yucal Australia Pty Ltd for the acquisition of Dynasty Living on Thursday, June 30, it said in a Bursa announcement on the same day.

The freehold development measures about 29,062 sq ft and comprises 320 units of apartments of which 62% have already been sold. It has an indicative gross development value of A$210 million and an indicative gross development cost of A$148 million.

The development is located on A’Beckett Street, at the heart of Melbourne’s central business district. Construction is expected to commence in 4Q2011 and expected to be completed in 2013.

This is the company’s maiden project in Australia and it will be its first step in placing Magna Prima on the global map, it said.