The Avare, KLCC | 41F | COMPLETED

baqthier · January 23rd, 2005, 06:24 PM

Magna Prima comes out

By Darshini M. Nathan
YEAR 2005 is being hailed as the year for small- and medium-capitalisation stocks to strut their stuff and recapture the interest of investors who were bowled over by blue chips last year. Magna Prima Bhd may have what it takes to do just that.

After all, the second board-listed company secured the contract by Telekom Malaysia Bhd to jointly develop a five-star condominium which would bear the elite Kuala Lumpur City Centre address.

In addition, it is working to secure more joint-venture projects this year to bolster its earnings once the contribution from its flagship development in Kepong, Kuala Lumpur tapers off in the years to come.

Also, with former City Hall mayor Tan Sri Kamaruzzaman Shariff recently appointed chairman of its board, there is indeed a greater chance of things moving in the right direction for the company.

Still, there is no getting away from one major issue. The property development cum construction outfit is very low profile and as a result is often overlooked by investors, analysts and potential clients alike.

There is little to associate the group with its biggest property project undertaken thus far – Metro Prima. On the construction side, it was awarded the Putrajaya Wetlands project. It was also one of the earthwork contractors behind the KL International Airport.

As a result, when it was announced early last year that Magna Prima had secured the Telekom contract, the immediate response of some industry observers was “Magna who?”

The company is behind the community regeneration project that took off in Kepong, Kuala Lumpur almost 10 years ago.

For now the strategy is to continue to undertake developments in the Klang Valley on a joint-venture basis, says Ghazali.
Its joint venture with City Hall Kuala Lumpur basically saw the builder end up with the development rights to an 88-acre piece of land in Kepong.

Part of the deal was for Magna to revive and revitalise the area by providing housing for the squatters.

Says its executive director Ahmad Ghazali Md Kassim, “ There was just so much to do (with the Metro Prima project) that there was no time to shout out and get noticed. Now, we feel the time is right to show ourselves in the market.”

Apart from having to convince and assure the squatters about the company's plans for the area, Ghazali says it took all of three years to sell the location to retailers.

But all that is changing. Jusco has set up shop on a nine-acre site and OCBC Bank has chosen the area to set up one of its bigger branches.

In terms of low-cost housing, the company has delivered up to 1,100 units. The balance, comprising another 1,400 units, will be delivered by August this year.

In addition, Magna has launched Plaza Prima, a medium-cost development based on the shop offices-downstairs-condominium-upstairs concept. Next to come on the market is Casa Prima, a 252-unit condominium development with prices ranging from RM170,000 to RM400,000 per unit.

“Our shop offices in Plaza Prima are almost fully sold. What's left are the Bumi(putra allotted) units. The apartments have achieved a take-up (rate)of about 70% currently,” Ghazali says.

The Metro Prima project carries a total gross development value (GDV) of about RM750mil. To date, about RM600mil has been locked in. As at mid-January, unbilled sales stood at RM160mil.

“Metro Prima will continue to drive the bulk of the group's earnings in financial year 2006 and 2007,” says Ghazali.

For the first nine months to September 2004, the group registered a lower net profit of RM139,000, compared with RM2.3mil a year earlier. Turnover declined 34% to RM76mil year-on-year.

With only a quarter of the total land bank in Kepong still undeveloped currently, Magna Prima is moving on to secure other projects that will drive its earnings going forward.

For now, Ghazali says the strategy is to continue to undertake developments in the Klang Valley on a joint-venture basis.

“We are studying some opportunities to acquire land bank but we have to have the financial resources for that. The target is to first lock in a GDV of RM500mil. This will generate the cash flow for any land acquisitions,” he explains.

The softe launch of the Avre.
Magna Prima is also close to closing a deal with the owner of a land parcel in Selayang. The project, if it takes off, will carry a GDV of RM180mil. It will contribute to earnings in the current financial year as the plans and development order are already in place.

In addition, Ghazali says that the company has submitted a proposal to develop a piece of land in the upmarket Bukit Tunku enclave.

Then, there is “The Avare“, Magna Prima's RM200mil joint-venture project with Telekom that is scheduled for launch this March.

The project, comprising 78 units priced between RM700 per sq ft and RM900 per sq ft, will mark Magna Prima's maiden foray into high-end property development.

But how is a company without a track record in the upmarket segment to compete with some of the bigger boys in a locale already bursting with competition.

The last count showed that there are ten property developers vying for the attention of prospective buyers drawn to the idea of luxurious city living.

Ghazali reckons that while there may be many developers in the area, each are launching only a limited number of units in the market.

“Supply is still restricted. Furthermore, we feel our design and concept is rather unique. We have assembled the best team for the project... from design right down to landscaping and finishes.”

Magna Prima's partnership with a big and well-known brand like Telekom, which will receive 20% of the project's total GDV, also helps in this case.

On the construction side, Ghazali says that efforts have been made to venture overseas to markets in the Middle East, Sudan and Thailand.

“We hope to build on our track record in housing development. But property development will continue to drive our earnings in the near- to medium-term,” he says.

The group expects to complete a private placement involving 4.2 million new RM1 shares this month. The exercise is expected to raise gross proceeds of about RM6.4mil, which will be utilised as working capital.

Over the week, Magna Prima also proposed a rights issue of up to 23.8 million warrants on the basis of one warrant for every two shares held in the company, at an issue price of 30 sen per warrant.

SEED · January 23rd, 2005, 07:52 PM

wow~ more beautiful apartment for klcc~ cool men

soo~ where bout in klcc they gonna build it~

***TYW*** · January 24th, 2005, 04:56 AM

looks like Highcliff!!!

THT-United · January 24th, 2005, 05:30 AM

Yeah, the similarity of this one with Highcliff is really striking!

Very well-designed slim building...

RafflesCity · January 30th, 2005, 01:56 PM

Quote:

Originally Posted by TYW

looks like Highcliff!!!

that is what I wanted to say too!

baqthier · January 24th, 2005, 05:56 AM

It will be located in the KLCC vincinity

20-04-2004: Telekom and Magna Prima to jointly develop luxury condos

Telekom Malaysia Bhd's wholly owned subsidiary TM Facilities Sdn Bhd has entered into an agreement with property developer Magna Prima Bhd to jointly develop 77 units of luxury condominiums with a gross development value of RM182 million.

The freehold land, which measures 46,048 sq ft situated in the vicinity of the Kuala Lumpur City Centre, is owned by Telekom. TM Facilities will receive RM36.4 million or 20% of the GDV over the four-year development period, inclusive of a minimum guaranteed land cost of RM15.33 million.

In a statement on April 20, Telekom said the project involved the building of one tower of "five-star diamond class luxury condominiums" to be branded as "Embassy Court" comprising 75 standard units of 3,500 sq ft each and two duplex penthouse units of 6,600 sq ft each.

The project was expected to be launched by the first quarter of next year and to be completed within three years from the date of launch. Telekom said the development of the land bank was to create value for the group.

tomkat · January 24th, 2005, 07:11 AM

Why on earth didn't Telekom Malaysia build its HQ on this land instead?

The HQ would be a nice complement to KLCC area.

Quote:

Originally Posted by baqthier

It will be located in the KLCC vincinity

20-04-2004: Telekom and Magna Prima to jointly develop luxury condos

Telekom Malaysia Bhd's wholly owned subsidiary TM Facilities Sdn Bhd has entered into an agreement with property developer Magna Prima Bhd to jointly develop 77 units of luxury condominiums with a gross development value of RM182 million.

The freehold land, which measures 46,048 sq ft situated in the vicinity of the Kuala Lumpur City Centre, is owned by Telekom. TM Facilities will receive RM36.4 million or 20% of the GDV over the four-year development period, inclusive of a minimum guaranteed land cost of RM15.33 million.

In a statement on April 20, Telekom said the project involved the building of one tower of "five-star diamond class luxury condominiums" to be branded as "Embassy Court" comprising 75 standard units of 3,500 sq ft each and two duplex penthouse units of 6,600 sq ft each.

The project was expected to be launched by the first quarter of next year and to be completed within three years from the date of launch. Telekom said the development of the land bank was to create value for the group.

ZaHiRnYa??? · January 27th, 2005, 03:43 AM

Where is the exact location of "The Avare" actually ?

***szehoong*** · January 27th, 2005, 04:05 AM

Quote:

Originally Posted by ZaHiRnYa???

Where is the exact location of "The Avare" actually ?

NO idea actually.........but I do remember that Telekom used to have a few bungalow plots there but not too sure the exact location

ZaHiRnYa??? · January 27th, 2005, 04:24 AM

Is it next to Mynmar Embassy? . Cause the bungalow lot next to it apparenty in the midst of being demolish for another up coming construction.

***szehoong*** · January 27th, 2005, 04:44 AM

Quote:

Originally Posted by ZaHiRnYa???

Is it next to Mynmar Embassy? . Cause the bungalow lot next to it apparenty in the midst of being demolish for another up coming construction.

Myanmese Embassy? That is a bit too far rite? The embassy is towards the end of Jalan Ampang Hilir and that is like a bit too far from KLCC IMO

***szehoong*** · January 27th, 2005, 04:50 AM

opps! Double posting

ZaHiRnYa??? · January 27th, 2005, 04:47 AM

Eh...I thought Myanmese Embassy is alongside Lorong Stonor, nearby the construction of Suria Stonor.

***szehoong*** · January 27th, 2005, 05:01 AM

Quote:

Originally Posted by ZaHiRnYa???

Eh...I thought Myanmese Embassy is alongside Lorong Stonor, nearby the construction of Suria Stonor.

I think the one you probably meant is the Vietnamese Embassy lah

ZaHiRnYa??? · January 28th, 2005, 05:17 AM

Quote:

Originally Posted by szehoong

I think the one you probably meant is the Vietnamese Embassy lah

Ha..ha...confirm la then. Indeed it is VIetnamese Embassy.

ZaHiRnYa??? · January 27th, 2005, 04:57 AM

Eh...double posting

Now Im confuse

***szehoong*** · January 27th, 2005, 05:02 AM

Quote:

Originally Posted by ZaHiRnYa???

Eh...double posting

Now Im confuse

Aiyoh.......you get confused easily.....I salah tekan 'submit' twice so I got the same post posted twice

ZaHiRnYa??? · January 27th, 2005, 05:06 AM

Oh..okay...eh..you know me la...sambung this Greg thing in mamak..i ask you already in one of the thread..can't remember which one already.

baqthier · March 18th, 2005, 07:05 PM

ooh...almost forgot about this project! So anyone know the location?

***szehoong*** · March 19th, 2005, 04:53 AM

Quote:

Originally Posted by baqthier

ooh...almost forgot about this project! So anyone know the location?

Wah.....just in time for me to annouce!

Just found out yesterday - it is gonna be located behind Singapore High Commission - next to the Telekom Malaysia exchange.

January 23rd, 2005, 06:24 PM	#1
baqthier RISING LIKE A SPIRE! Join Date: Jul 2002 Location: Land of The Petronas Towers Posts: 6,304 Likes (Received): 2	The Avare, KLCC \| 41F \| COMPLETED Magna Prima comes out By Darshini M. Nathan YEAR 2005 is being hailed as the year for small- and medium-capitalisation stocks to strut their stuff and recapture the interest of investors who were bowled over by blue chips last year. Magna Prima Bhd may have what it takes to do just that. After all, the second board-listed company secured the contract by Telekom Malaysia Bhd to jointly develop a five-star condominium which would bear the elite Kuala Lumpur City Centre address. In addition, it is working to secure more joint-venture projects this year to bolster its earnings once the contribution from its flagship development in Kepong, Kuala Lumpur tapers off in the years to come. Also, with former City Hall mayor Tan Sri Kamaruzzaman Shariff recently appointed chairman of its board, there is indeed a greater chance of things moving in the right direction for the company. Still, there is no getting away from one major issue. The property development cum construction outfit is very low profile and as a result is often overlooked by investors, analysts and potential clients alike. There is little to associate the group with its biggest property project undertaken thus far – Metro Prima. On the construction side, it was awarded the Putrajaya Wetlands project. It was also one of the earthwork contractors behind the KL International Airport. As a result, when it was announced early last year that Magna Prima had secured the Telekom contract, the immediate response of some industry observers was “Magna who?” The company is behind the community regeneration project that took off in Kepong, Kuala Lumpur almost 10 years ago. For now the strategy is to continue to undertake developments in the Klang Valley on a joint-venture basis, says Ghazali. Its joint venture with City Hall Kuala Lumpur basically saw the builder end up with the development rights to an 88-acre piece of land in Kepong. Part of the deal was for Magna to revive and revitalise the area by providing housing for the squatters. Says its executive director Ahmad Ghazali Md Kassim, “ There was just so much to do (with the Metro Prima project) that there was no time to shout out and get noticed. Now, we feel the time is right to show ourselves in the market.” Apart from having to convince and assure the squatters about the company's plans for the area, Ghazali says it took all of three years to sell the location to retailers. But all that is changing. Jusco has set up shop on a nine-acre site and OCBC Bank has chosen the area to set up one of its bigger branches. In terms of low-cost housing, the company has delivered up to 1,100 units. The balance, comprising another 1,400 units, will be delivered by August this year. In addition, Magna has launched Plaza Prima, a medium-cost development based on the shop offices-downstairs-condominium-upstairs concept. Next to come on the market is Casa Prima, a 252-unit condominium development with prices ranging from RM170,000 to RM400,000 per unit. “Our shop offices in Plaza Prima are almost fully sold. What's left are the Bumi(putra allotted) units. The apartments have achieved a take-up (rate)of about 70% currently,” Ghazali says. The Metro Prima project carries a total gross development value (GDV) of about RM750mil. To date, about RM600mil has been locked in. As at mid-January, unbilled sales stood at RM160mil. “Metro Prima will continue to drive the bulk of the group's earnings in financial year 2006 and 2007,” says Ghazali. For the first nine months to September 2004, the group registered a lower net profit of RM139,000, compared with RM2.3mil a year earlier. Turnover declined 34% to RM76mil year-on-year. With only a quarter of the total land bank in Kepong still undeveloped currently, Magna Prima is moving on to secure other projects that will drive its earnings going forward. For now, Ghazali says the strategy is to continue to undertake developments in the Klang Valley on a joint-venture basis. “We are studying some opportunities to acquire land bank but we have to have the financial resources for that. The target is to first lock in a GDV of RM500mil. This will generate the cash flow for any land acquisitions,” he explains. The softe launch of the Avre. Magna Prima is also close to closing a deal with the owner of a land parcel in Selayang. The project, if it takes off, will carry a GDV of RM180mil. It will contribute to earnings in the current financial year as the plans and development order are already in place. In addition, Ghazali says that the company has submitted a proposal to develop a piece of land in the upmarket Bukit Tunku enclave. Then, there is “The Avare“, Magna Prima's RM200mil joint-venture project with Telekom that is scheduled for launch this March. The project, comprising 78 units priced between RM700 per sq ft and RM900 per sq ft, will mark Magna Prima's maiden foray into high-end property development. But how is a company without a track record in the upmarket segment to compete with some of the bigger boys in a locale already bursting with competition. The last count showed that there are ten property developers vying for the attention of prospective buyers drawn to the idea of luxurious city living. Ghazali reckons that while there may be many developers in the area, each are launching only a limited number of units in the market. “Supply is still restricted. Furthermore, we feel our design and concept is rather unique. We have assembled the best team for the project... from design right down to landscaping and finishes.” Magna Prima's partnership with a big and well-known brand like Telekom, which will receive 20% of the project's total GDV, also helps in this case. On the construction side, Ghazali says that efforts have been made to venture overseas to markets in the Middle East, Sudan and Thailand. “We hope to build on our track record in housing development. But property development will continue to drive our earnings in the near- to medium-term,” he says. The group expects to complete a private placement involving 4.2 million new RM1 shares this month. The exercise is expected to raise gross proceeds of about RM6.4mil, which will be utilised as working capital. Over the week, Magna Prima also proposed a rights issue of up to 23.8 million warrants on the basis of one warrant for every two shares held in the company, at an issue price of 30 sen per warrant. __________________ Whatever lah! *7 YEARS OF THE MALAYSIAN FORUM Since 22nd Dec, 2002* - Kuala Lumpur Sky - Penang Sky Last edited by TYW; February 15th, 2013 at 08:59 AM.

January 24th, 2005, 04:56 AM	#3
*TYW* Penang Skyscrapers Hunter Join Date: Sep 2002 Location: George Town Posts: 9,276 Likes (Received): 1	looks like Highcliff!!! __________________ THE CITY OF GEORGE TOWN, PENANG - 55 YEARS (1ST JANUARY 1957) "the said Municipality of George Town shall on the First Day of January in the Year of our Lord one thousand nine hundred and fifty seven and forever thereafter be a city and shall be called and styled the CITY OF GEORGE TOWN instead of the Municipality of George Town and shall thenceforth have all such rank, liberties, privileges and immunities as are incident to a city." - Queen Elizabeth II

January 24th, 2005, 05:30 AM	#4
THT-United Apples and Scrapers... Join Date: Nov 2003 Location: Petaling Jaya in Malaysia Posts: 1,535 Likes (Received): 23	Yeah, the similarity of this one with Highcliff is really striking! Very well-designed slim building... __________________ Fastlane2u.com The SkyscraperCity Malaysian Forums iFans.com for all Apple Fanboys

January 24th, 2005, 05:56 AM	#6
baqthier RISING LIKE A SPIRE! Join Date: Jul 2002 Location: Land of The Petronas Towers Posts: 6,304 Likes (Received): 2	It will be located in the KLCC vincinity 20-04-2004: Telekom and Magna Prima to jointly develop luxury condos Telekom Malaysia Bhd's wholly owned subsidiary TM Facilities Sdn Bhd has entered into an agreement with property developer Magna Prima Bhd to jointly develop 77 units of luxury condominiums with a gross development value of RM182 million. The freehold land, which measures 46,048 sq ft situated in the vicinity of the Kuala Lumpur City Centre, is owned by Telekom. TM Facilities will receive RM36.4 million or 20% of the GDV over the four-year development period, inclusive of a minimum guaranteed land cost of RM15.33 million. In a statement on April 20, Telekom said the project involved the building of one tower of "five-star diamond class luxury condominiums" to be branded as "Embassy Court" comprising 75 standard units of 3,500 sq ft each and two duplex penthouse units of 6,600 sq ft each. The project was expected to be launched by the first quarter of next year and to be completed within three years from the date of launch. Telekom said the development of the land bank was to create value for the group. __________________ Whatever lah! *7 YEARS OF THE MALAYSIAN FORUM Since 22nd Dec, 2002* - Kuala Lumpur Sky - Penang Sky

January 27th, 2005, 03:43 AM	#8
ZaHiRnYa??? you are you and i am me.. Join Date: Jul 2003 Location: Kuala Lumpur Posts: 5,861 Likes (Received): 6	Where is the exact location of "The Avare" actually ? __________________ me, me, me and more me.. he..he...

January 23rd, 2005, 07:52 PM	#2
SEED Registered User Join Date: Oct 2002 Posts: 3,140 Likes (Received): 1	wow~ more beautiful apartment for klcc~ cool men soo~ where bout in klcc they gonna build it~

January 27th, 2005, 04:24 AM	#10
ZaHiRnYa??? you are you and i am me.. Join Date: Jul 2003 Location: Kuala Lumpur Posts: 5,861 Likes (Received): 6	Is it next to Mynmar Embassy? . Cause the bungalow lot next to it apparenty in the midst of being demolish for another up coming construction. __________________ me, me, me and more me.. he..he...

January 27th, 2005, 04:50 AM	#12
*szehoong* MALAYSIAKU GEMILANG Join Date: Sep 2002 Location: Kuala Lumpur Posts: 8,934 Likes (Received): 158	opps! Double posting __________________ The MALAYSIAN Forums

January 27th, 2005, 04:47 AM	#13
ZaHiRnYa??? you are you and i am me.. Join Date: Jul 2003 Location: Kuala Lumpur Posts: 5,861 Likes (Received): 6	Eh...I thought Myanmese Embassy is alongside Lorong Stonor, nearby the construction of Suria Stonor. __________________ me, me, me and more me.. he..he...

January 27th, 2005, 04:57 AM	#16
ZaHiRnYa??? you are you and i am me.. Join Date: Jul 2003 Location: Kuala Lumpur Posts: 5,861 Likes (Received): 6	Eh...double posting Now Im confuse __________________ me, me, me and more me.. he..he...

January 27th, 2005, 05:06 AM	#18
ZaHiRnYa??? you are you and i am me.. Join Date: Jul 2003 Location: Kuala Lumpur Posts: 5,861 Likes (Received): 6	Oh..okay...eh..you know me la...sambung this Greg thing in mamak..i ask you already in one of the thread..can't remember which one already. __________________ me, me, me and more me.. he..he...

March 18th, 2005, 07:05 PM	#19
baqthier RISING LIKE A SPIRE! Join Date: Jul 2002 Location: Land of The Petronas Towers Posts: 6,304 Likes (Received): 2	ooh...almost forgot about this project! So anyone know the location? __________________ Whatever lah! *7 YEARS OF THE MALAYSIAN FORUM Since 22nd Dec, 2002* - Kuala Lumpur Sky - Penang Sky

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