Magna Prima moves to revive 8 Conlay; valuer disputes Duta enclave valuation

Magna Prima moves to revive stalled 8 Conlay

Magna Prima Bhd’s wholly owned unit Permata Juang (M) Sdn Bhd has entered into a rehabilitation agreement to take over and complete the stalled 8 Conlay mixed-use development in Kuala Lumpur, under a restructuring involving up to RM700 million in commercial entitlement and assumed liabilities.

Rather than paying a conventional cash acquisition price, Permata Juang will assume liabilities of up to RM700 million and settle them through redeemable secured loan securities issued to a security trustee for the project’s secured lenders, Malayan Banking Bhd and Bank Pembangunan Malaysia Bhd. It will separately provide a RM70 million cash covenant. The restructuring exercise is expected to be completed in the first half of 2027, subject to conditions including court sanction of a scheme of arrangement, shareholder approval and lender consent.

The project, on 3.65 acres of freehold land near Pavilion Kuala Lumpur, comprises a retail podium, two residential towers, a hotel and hotel suites. A total of 564 units — 404 in Tower A and 160 in Tower B — had been sold under signed sale and purchase agreements.

Valuer disputes government’s 1956 Duta enclave valuation

A certified valuer told the High Court on Friday that the government’s valuation of the 263.272-acre Duta enclave, formerly owned by Semantan Estate (1952) Sdn Bhd, should not be relied upon in determining compensation for its 1956 acquisition.

Testifying as Semantan Estate’s first witness, Foo Gee Jen said the government’s historical valuation materials lacked independent verification. He also disputed the argument that the land should attract a lower value because it was then within Selangor rather than the Kuala Lumpur municipality. Foo testified that comparable sales supported a market value of between RM5,879 and RM6,000 an acre, or about RM1.55 million to RM1.58 million for the entire site.

The courts have previously found the pre-Merdeka acquisition unlawful and ordered compensation to be assessed at 1956 market values, with mesne profits for unlawful occupation to be determined separately. In the wider dispute, the government has offered RM290 million, while Semantan Estate’s reported claims range from RM3.1 billion to RM13 billion. The trial is due to resume on Aug 21.

Also on the radar today

Today's roundup

A quieter weekend put unfinished developments and long-running property disputes in focus. Magna Prima proposed a restructuring to revive Kuala Lumpur’s stalled 8 Conlay project, offering a potential route towards completing the luxury development, while testimony in the Duta enclave litigation reopened the question of how the 263-acre site should have been valued when it was acquired in 1956. In Penang, Intuitive Surgical plans to invest up to US$500 million (RM2.04 billion) in its manufacturing operation over its first five years, with the Bandar Cassia facility expected to begin operations in 2028 and create 1,200 skilled jobs by 2032. Elsewhere, paid fares began on the LRT3 Shah Alam Line, a High Court ruling addressed ownership of facilities in a Kepong strata scheme, and a management dispute continued at Green Garden Flats in Penang.