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Friday, August 5, 2011

Magna Prima plans RM478m Melbourne property devt

KUALA LUMPUR: MAGNA PRIMA BHD is making into foray into Australia to undertake a mixed residential and commercial project in Melbourne with an indicative gross development cost of A$148 million (RM482.18 million).

The company said on Friday, Aug 5 it expected to record a profit of A$62 million (RM200.32 million) from the project.

Magna Prima had on Friday signed a conditional contract of sale with Yucai Australia Pty Ltd to purchase 2,761 sq metres of land for A$26 million (RM84.01 million) on Beckett Street, Melbourne.

The land would be developed into a mixed residential and commercial project to be known as Dynasty Living.

The project would comprise a contemporary 26 level mixed development of 320 residential apartments contained within a main tower, complemented by seven retail/commercial tenancies.

The apartments and retail/commercial tenancies would have 130 single and 51 tandem car spaces providing for 181 apartments.

“The indicative gross development cost is A$148 million with an expected profit of A$62 million. Construction is expected to commence in the fourth quarter of 2011, and to be completed in 2013,” it said.

Magna Prima said the development cost would be its own funds and/or bank borrowings. The planning permit from the Minister of Planning was obtained on May 5, 2002 and amended on Oct 6, 2009.

“As part of the company’s plan of putting a strong footing for growth, the proposed acquisition will be the company’s first step in placing the group on the global map,” it said.

Magna Prima said the proposed acquisition was in line with its strategy of acquiring niche suitable development land with strong potential for prime and sizable new developments.

“The board is of the view that the proposed acquisition provides the group with a rare and valuable opportunity to venture into the robust, high-income and mature Melbourne property market,” it added.

By The EDGE Malaysia

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