Magna Prima in RM48 million deal with Petaling Garden (Sept 4, 2009)

KUALA LUMPUR: Magna Prima Bhd is acquiring two pieces of land, totalling 28,148 sq metres in Petaling Garden from Petaling Garden Sdn Bhd for RM48.48 million.

Magna Prima says the first piece of land was 16,790.363 sq m (180,736 sq ft) while the second piece measures 11,358 sq m (122,260 sq ft) together with a row of 15 single-storey lock-up shops at Jalan 5/44 Petaling Garden.

It says the total purchase consideration of the properties was RM48.48 million or RM160 per sq ft.

Magna Prima says the properties were for future development purposes. It adds that the proposed acquisition would increase its landbank and is in line with the group’s corporate strategy to develop strategically-located land in high-density areas, with easy accessibility and significant gross development value, for the development of lifestyle-themed projects within a short turnaround time.

"The proposed acquisition shall be financed through internally-generated funds and/or bank borrowings," it says, adding that it would be able to finance about 70% of the proposed acquisition via bank borrowings and the balance of 30% from internally-generated funds.

Magna Prima says its gearing was expected to increase from 0.65 times to 0.94 times after the proposed acquisition.