Magna Prima Bhd ... Dec 08

Developer plans RM300mil mid to high-end landed properties.

It plans to build mid to high-end landed properties with an estimated gross development value (GDV) of RM300mil in the next three years.

The move, a departure from Magna’s traditional high-rise housing market, is to meet the rising demand for super-link and semi-detached houses and bungalows based on the gated-and-guarded community concept.

The projects, in Bukit Jalil and Selayang, are expected to be launched by June 2009.

In addition, landed property gives them the flexibility to launch houses and construction by phases, relaxing our cashflow. The group is seeking a profit margin of 25% for the segment.

Magna expects the landed property market to contribute 25% to group revenue in 2009, which is targeted at RM400mil.

Magna Prima have been steadily building up our unbilled sales (RM230mil as at end-October 2008) to a comfortable level before the meltdown and they should not face any significant adverse impact on its revenue and profit margins.

The company is expected to finalise the acquisition of two pieces of land, with a total size of 35 acres, in two months. The plots of land are located in prime areas, he says, without revealing their locations.

Currently, Magna has a total of 39.2 acres in its land bank, with an estimated RM2bil in GDV.