KUALA LUMPUR (June 9): Property developer Magna Prima Bhd and its subsidiary Embassy Court Sdn Bhd (ECSB) are being sued by 24 people for RM25 million, for the alleged poor quality of its six-star luxury condominium, The Avare, at KLCC.
In Magna Prima’s filing to Bursa Malaysia today, it is shown that the suit, led by Dr Adam Victor, has been lodged at the Kuala Lumpur High Court.
The plaintiffs’ claim is premised on: “alleged poor and defective facade design design, low quality material, poor workmanship, failure to fully rectify the defect in the parcel and common property, structurally unsound construction, and breach of the implied term to build and deliver a six-star luxurious condominium”.
They also alleged there is a misrepresentation by Magna Prima (fundamental: 1.1, valuation: 1.4) and Embassy Court.
Magna Prima was named the first defendant and Embassy Court, the second defendant.
Embassy Court is the developer/vendor of the said development, while Magna Prima is the proprietor of the land on which the development is located, the filing read.
Magna Prima said it has instructed its solicitors to file an application to strike out the plaintiffs’ claim against the company, and for Embassy Court to file a defense in respect of the plaintiffs’ claim.
“Solicitors for MPB and ECSB are of the view that MPB has a strong and good chance of succeeding in the Striking out Application, while ECSB has a reasonable chance in defending the plaintiff’s claim,” it said.
“The expected losses are restricted to the total sum claimed by the plaintiff(s),” it added.
According to Magna Prima's webpage, The Avare is a six-star, "award winning super luxury condominium" that is located in Kuala Lumpur's city centre.
"Superior by design and build, this 41-storey, 78-unit masterpiece was constructed using IBS (industrialised building system), which enabled The Avare to be built rapidly, while maintaining high standards of quality and safety," the webpage read.
It was also stated that the contract value of the project was RM148 million. Magna Prima shares closed 2 sen or 1.89% lower at RM1.04 today, with a market capitalisation of RM352.86 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations).