KUALA LUMPUR: Magna Prima Bhd said it is in the process of evaluating the offers it has received for the prime pieces of land it is looking to sell in the Klang Valley.

“We are quite serious about selling the prime land parcels we own. We have gotten a few offers, but we are still waiting for some of the bidders to re-adjust their price. Hopefully, we can conclude that in the future,” chief executive officer Datuk Rahadian Mahmud Mohammad Khalil told reporters after the group’s extraordinary general meeting yesterday.

He said the group is in talks with a few players, including major property companies, but did not reveal who the parties are.

Currently, the group has over 30 acres (12ha) of prime land bank, including a 20-acre tract in Section 15, Shah Alam, the former site of SJK (C) Lai Meng in Kuala Lumpur, and two parcels in Petaling Jaya.

Rahadian, however, said the group may reconsider selling some tracts, depending on which land Magna sells first, and the outlook for the market.

“We will replenish our land bank if we sell the land. The sale will net us quite a substantial amount of money. We will reuse that capital to acquire more fast-turnaround kind of projects,” said Rahadian.

The group is already browsing for new tracts to acquire around the Greater KL-Klang Valley areas, he added. He said the move to dispose of some of Magna’s (fundamental: 1.1; valuation: 2) prime tracts is a defensive move, due to the current uncertain economic outlook.

Magna is also looking to diversify its revenue stream, to be less dependent on property development, but declined to elaborate. Despite the cloudy outlook for the property market, the group said it will remain profitable this year, supported by the completion of The Istana in Melbourne, Australia, and its two ongoing projects, the Boulevard Business Park in Jalan Kuching, and 36 shop offices in Desa Mentari, Bandar Sunway.

“This year, we will perform well as we completed the Australian project and will be finishing Phase 1 of the Jalan Kuching project.”

This article first appeared in The Edge Financial Daily, on July 9, 2015.