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Monday, February 8, 2010

Magna Prima plans RM1.3b twin towers on KL prime site

Property developer Magna Prima Bhd will build twin tower blocks, valued at more than RM1.3 billion, on 1.05ha prime land near the Petronas Twin Towers in Jalan Ampang, Kuala Lumpur, its chief said.

Magna Prima bought the land, currently occupied by the 44-year-old Lai Meng Primary School and Lai Meng Kindergarten, from the Lai Meng Girls School Association for RM148.2 million in March last year.

Previously, Magna Prima had wanted to build a 50-storey Grade A office building, a 38-storey serviced apartment tower and a two-level retail podium, with total estimated gross floor area of 1.2 million sq ft, on the existing school site.

"If we could, we would have liked to build a luxury hotel, too. But we have to look at what is already in the market in that location.

"We feel we can extract the most value from the land by building the twin blocks," its chief executive officer Yoong Nim Chee said.
The first tower will feature luxury serviced apartments. The second tower will be a Grade A green office building with up to 900,000 sq ft of net lettable area. The office tower may be leased or sold.

"We are conceptualising the designs with international architects. Also, on how best to position the products," Yoong told Business Times in an interview.

Magna Prima is targeting to start construction in 2013, after approval by Ho Hup Construction Co Bhd's shareholders to sell to the company 2.2ha in Bukit Jalil, Kuala Lumpur, for RM10.7 million where the new Lai Meng school will be built.

The school association has confirmed that it will move to a site in Bukit Jalil, and Magna Prima will help in the relocation of the school, Yoong said.

However, Magna Prima's project in Jalan Ampang will only start when the new school is completed.

The twin towers 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 Avare condominium in Jalan Stonor, launched in 2005.

"We believe our product offering will hold well. Look at land transactions opposite where we bought ours. The deals were transacted at a higher value. So, we are expecting some decent profits during the development," Yoong said.

Last November, Dijaya Corp Bhd said it would pay RM123 million for land in Jalan Ampang on which the historical Bok House used to sit.

The price translates into about RM2,200 per sq ft (psf), which is slightly below the RM2,588 psf that Sunrise Bhd paid in August 2008 for the land occupied by Wisma Angkasa Raya.

Magna Prima's price for the land translates into RM1,500 psf.

By Business Times

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