Magna Prima sees waiver of RPGT boosting sales
Posted on | April 12, 2007
By THE EDGE Magna Prima Bhd, which is planning more high-end property projects, has seen itself benefiting from the waiver of real property gains tax (RPGT) by the government. Its chief executive officer Lim Ching Choy said the developer, which returned to the black last financial year ended Dec 31, 2006, had seen sales of its high-end properties quadrupling after the waiver of RPGT was announced. “We had RM20 million sales immediately after the waiver and are expecting another RM20 million within by the end of the month. We usually sell one or two units a month, which is about RM10 million,” he said. The government had on March 22 announced the waiver of the RPGT with effect from April 1 to further improve the property sector. He said the abolishment of RPGT would help it cushion “external shocks or slowdown” in the property market. Lim was speaking to reporters after the signing ceremony of a RM61 million facility granted under the Murabahah concept between Magna Prima and Kuwait Finance House (Malaysia) Bhd (KFHMB) in Kuala Lumpur on April 11. Lim said Magna Prima was stepping up its presence in the high-end properties segment, which are highly sought by foreign buyers. Its first high-end project is the RM250 million Avare KLCC. He said Magna Prima was mulling two others at exclusive and prime areas in the Klang Valley in line with its strategy to position and rebrand itself. Lim said it had been scouting for areas for upper-end markets to develop such projects, which would have a higher gross development value compared to its Avare KLCC. It has been reported that Magna Prima was looking at “upper-end” markets like Bangsar, Bukit Tunku and Bukit Damansara and scouting for pocket size parcels of high-rise developments in Kepong, Selayang and Shah Alam. Besides its Avare KLCC, its existing and ongoing projects include Metro Prima in Kepong, Dataran Otomobil in Shah ALam and Magnaville in Selayang. 
Of the proceeds, RM25 million would be used to partly finance the acquisition of land from TM Facilities Sdn Bhd and the remainder will be for working capital and construction cost in relation to its RM250 million Avare KLCC project.
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