Magna Prima to launch over RM2b projects this year

KUALA LUMPUR: Magna Prima Bhd expects to launch several projects with a gross development value (GDV) of over RM2 billion this year. The serviced apartments in Jalan Kuching, Kuala Lumpur, will be developed within the next two months.

Magna Prima CEO Datuk Rahadian Mahmud Mohammad Khalil told The Edge Financial Daily on Jan 22  the project, Boulevard Business Park, will have a total GDV of RM635 million.

Spanning over 10.23 acres (4.1ha) of freehold land, the Boulevard Business Park is an integrated development comprising shop offices, serviced apartments and a retail mall.

“The serviced apartments have generated quite an interest. So far, we have about 50 bookings for the apartments,” said Rahadian, adding that a total of 345 units of between 950 sq ft and 1,300 sq ft each would be built.

He said the serviced apartments will be going for about RM500 per sq ft and will cost between RM410,000 and RM713,000.
“We are planning to build the retail mall, which is phase 3, in the second quarter this year. This will run concurrently with the serviced apartments project,” said Rahadian.

The apartments and the retail mall are slated for completion in 2015, while the construction of the office blocks is estimated to be completed in 2014.

About 80% of phase one of the development consisting of office blocks has been snapped up. The niche property developer is planning to embark on two more projects this year.

One of them is on a parcel of land in Petaling Jaya, Selangor, which the company purchased for RM23.03 million last year.
“The land acquisition is not completed yet. We expect the purchase to be done by March and we plan to commence development in the second quarter this year,” said Rahadian.

The 76,757 sq ft tract will house 36 shop lots with a GDV of RM68 million. The shops are expected to be completed in 18 months after commencement of works.

Magna Prima also plans to commence its RM1.4 billion mixed development in Section 15, Shah Alam, this year. The company acquired the 20-acre land last September 2012 from PCM Bina Sdn Bhd for RM100 million. It was settled with RM70 million in cash and RM30 million in shares amounting to a 30% stake in Magna Prima unit, Magna Ecocity Sdn Bhd.

“All of our projects have done well so far. But the thing is, our share price is still very undervalued. Hopefully, with these new projects coming up, investors will start to see more value in our company,” said Rahadian.

Magna Prima closed at 76 sen yesterday, down 0.65% from last Friday. Over the last six months, the share price has been fluctuating between 75.5 sen and 83.5 sen.