MAGNA Prima Bhd will be launching 345 serviced apartments at its RM625 million Boulevard Business Park in Jalan Kuching, Kuala Lumpur, after the Chinese New Year.
The two- and three-bedroom units will be priced at between RM405,000 and RM713,000, or about RM500 per square feet, said its chief executive officer Datuk Rahadian Mahmud Mohammad Khalil.
Rahadian is optimistic about the take-up rate after garnering positive sales for the shop office blocks.
The freehold Boulevard integrated commercial development comprises 90 units of four-storey shop office blocks, a 33-storey serviced apartment tower and a 120,000 sq ft retail mall.
The shop offices, launched in early 2012, are 80 per cent sold.
Rahadian told Business Times that the intermediate blocks were sold for RM3.4 million on average while the corner units fetched more than RM4 million each.
He said the majority of the blocks were purchased by owner occupiers.
As part of a larger plan to enhance the project, Rahadian said Magna Prima will be setting aside 100,000 sq ft at the lower ground floor, which will be leased to a major hypermarket operator.
"I have no doubt the residential component will do well, too. The key points are the pricing, location and contents of the project. The public is attracted to mixed properties.
"The residential tower, with its modern facade, is designed so that each unit can enjoy maximum panoramic views. Some 15 per cent of the units have been sold prior to the launching," Rahadian said.
On the retail component, Rahadian said Magna Prima plans to retain it for recurring income.
"It is part of the company's strategy to retain assets for recurring income. The mall is the first such asset and we are looking at more developments," he said.
Rahadian said the project will set a new benchmark in pricing and change the landscape of Jalan Kuching once it is completed by the end of 2015.
Meanwhile, Magna Prima will be launching new projects in the second quarter of this year worth more than RM1.5 billion.
In Section 16, Shah Alam, Magna Prima will launch a RM1.4 billion mixed development comprising shop offices, a 500,000 sq ft mall and residences.
At Sunway Mentari, it will launch 36 units of shoplots worth a combined RM68 million.
At Section 5 in Petaling Jaya, Magna Prima plans to build a temporary lifestyle commercial centre.
"We are still planning the product offering for the commercial centre to complement the lifestyle of the residents in the area," Rahadian said.