Malaysia: Magna Prima’s RM 1.8billion venture is being developed

Magna Prima Bhd will be developing a RM1.8 billion luxury property at a 1.05ha site in Jalan Ampang that is now Lai Meng Primary School and Lai Meng Kindergarten.

Chief operating officer Datuk Rahadian Mahmud Mohammad Khalil said the project, which comprises two luxury towers, is slated for launch next year after the new Lai Meng school in Bukit Jalil is completed in the third quarter of this year.

He said Magna Prima is preparing the building and layout plans for the new project.

The first tower will be a Grade A green office building and the company is in talks on selling it to local fund management companies.

The second tower will comprise a mix of luxury serviced apartments, a five-star hotel and offices.

“The lower levels will be the offices while the upper floors will comprise hotel rooms. We plan to submit the building plans within the next couple of months,” Rahadian told Business Times.

Rahadian, however, said Magna Prima is in no hurry to unlock the value of the land, which has doubled since its acquisition.

“The land is now worth about RM300 million and the value is

still increasing. The longer we keep it, the higher the value.

At the end of the day, our shareholders will benefit,” he said.

He said the group has several sizeable on-going projects that will keep it busy.

“The new Lai Meng school will be ready this year. When the school moves, we will take possession of the site,” he said.

Magna Prima bought the land from the Lai Meng Girls School Association for RM148.2 million in March 2010, in exchange for a piece of 2.2ha land at Bukit Jalil.

The company bought the 2.2ha land from Santari Sdn Bhd in Bukit Jalil for RM10.7 million. It is building the school at its own cost, which is believed to be between RM20 million and RM30 million.

The twin tower project will be Magna Prima’s single largest development to date and its second project in the Kuala Lumpur city centre area.

The first was the RM300 million 41-storey The Avare condominium in Jalan Stonor, launched in 2005.

The Avare offered 78 units with sizes ranging from 3,8 sq ft 00 to 7,696 sq ft. The last transacted price was RM2,100 per square feet (psf) in the fourth quarter of 2007, an increase of almost 50 per cent from the launch price of RM1,350 psf.

Rahadian believes the Jalan Ampang project will set a new benchmark in pricing.

Source: Malaysia Chronicle

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