Magna Prima forms JV for 709-unit residential development in Perak

KUALA LUMPUR: Magna Prima Bhd’s wholly-owned subsidiary, Magna City Shah Alam Sdn Bhd, has entered into a joint venture agreement (JVA) with Amat Potensi Sdn Bhd (APSB) to develop a 709-unit residential project in Kinta, Perak.

In a filing with Bursa Malaysia, Magna Prima said the project will be carried out on a 99-year leasehold land spanning about 216,907 sq m.

Under the agreement, APSB, the landowner, will receive a fixed entitlement of RM33mil, payable in three tranches.

It will also be entitled to 25% of the project’s profit before tax, payable within 28 days of the issuance of the certificate of completion and compliance.

“The proposed JV presents a strategic opportunity for MCSA and Magna Group to expand its presence in the state of Perak through collaboration with APSB.

“Barring any unforeseen circumstance, the board is optimistic that the prospects of Magna Group would favourable and the proposed JV will fortify the financial performance of Magna Group in the future,” Magna Prima said.