Hua Yang Eyes Land Near Petronas Twin Towers

April 21, 2017

 

Hua Yang Bhd’s subsidiary Prisma Pelangi Sdn Bhd is buying an additional 20.12 percent stake in Magna Prima Bhd from Fantastic Realty Sdn Bhd and five other persons for RM123.7 million or RM1.85, reported The Star.

Upon the completion of the deal, Hua Yang’s stake will rise to 30.96 percent, making it the single biggest stockholder in Magna Prima, which owns 2.62 acres of land along Jalan Ampang near the famous Petronas Twin Towers.

“Although we already hold strategic landbanks in this region, this collaboration allows us to invest in existing landbanks that hold strong potential for growth, such as those in Jalan Ampang, Kuala Lumpur; Jalan Gasing, Petaling Jaya, as well as Seksyen 15, Shah Alam, amongst others,” said Hua Yang CEO Ho Wen Yan.

In a filing with Bursa Malaysia, the company stated that the acquisition will be financed by borrowings and internally generated resources.

“The proposed acquisition may create an avenue for the company to explore potential collaboration or joint-venture opportunities with Magna Prima for the acquisition of landbank, as well as the undertaking of development projects in the future,” it explained.

At present, Hua Yang and its subsidiaries hold around 600 acres of landbank, including 35 acres in Klang Valley.

On the other hand, Magna Prima possess landbank, mainly situated in Mentakab, Shah Alam, Petaling Jaya and Jalan Ampang, have a combined value of RM580 million.

The company’s core business is property development, with notable projects like The Avare luxury condominium at the Kuala Lumpur City Centre (KLCC) and The Istana in Melbourne, Australia.

Interestingly, the price Hua Yang is willing to pay for the shares is nearly 20 percent higher than Magna Prima’s closing price of RM1.54 on 19 April. But the buyer said the valuation was based on the acquiree’s net asset value of RM1.82 per share as of 31 December 2016.

However, Magna Prima’s revenue for the year ending on 31 December 2016 slumped by 82 percent to RM142.7 million, while net earnings plunged by 82 percent to RM44.8 million.

Nevertheless, Magna Prima’s stock price has surged by 57 percent in the last six months, surpassing its peers by a large margin.

Among developments near Petronas Twin Towers are:

Star Residences KLCC

The Luxe By Infinitum

 

Image sourced from The Star

 

Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my

 

For more information on new top homes, check out PropertyGuru’s New Property Launches and Project Reviews.

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