Magna Prima plans RM1.8b project

MAGNA Prima Bhd is taking over the 1.05ha site in Jalan Ampang, Kuala Lumpur, now housing the Lai Meng Primary School and Lai Meng Kindergarten, by early 2014 to build two towers worth RM1.8 billion.

The developer is building two 60-storey towers. The first is a Grade A office tower, while the second building will feature luxury serviced apartments, a five-star hotel and offices.

Chief executive officer Datuk Rahadian Mahmud Mohammad Khalil said construction for the two towers will commence in the third or fourth quarter of this year and will be completed over four years.

Rahadian said the company will use debts and its internal funds to finance the development.

He said Magna Prima has received offers from local and institutional funds to buy the towers en bloc.

"We have been approached by several funds, which I can't name, and may sell to them depending on the offer price," he said yesterday, after announcing the relocation plan for the school and kindergarten.

Magna Prima bought the land from the Lai Meng School Board for RM148.2 million in March 2010. It was invited to bid for the land, along with six other developers, including Hong Leong Group, Mah Sing Group Bhd, SP Setia Bhd and Dijaya Corp Bhd.

The proposal by Magna Prima includes, among others, to build the new school and kindergarten on a 2.2ha site in Bukit Jalil at its own cost, which is believed to be RM20 million to RM30 million.

Rahadian said the school, which can accommodate up to 2,000 students, is 33 per cent ready and would be completed by the end of this year.