Developer Prima Prai unit gets Kuwait Finance financing

Property developer Prima Prai Group Bhd's second phase of luxury bungalow units in Penang will be financed by Kuwait Finance House (M) Bhd.

The Islamic back signed an agreement yesterday to provide Corner Side Realty Sdn Bhd a mudharabah (profit-sharing) financing of RM74.7 million for 30 bungalow units.

Corner Side Realty Sdn Bhd is part of the Prima Prai Group and a wholly-owned subsidiary of B.U. Development Sdn Bhd, the developer of this project.

"The developer will 'wholesale' the development to Kuwait Finance House, in turn, the latter will retail the units in the open market," said Corner Side Realty managing director Datuk Mohd Ramzan Ibrahim during the press conference after the signing ceremony.

The units are part of a development on a 11.2ha of freehold gated residential project known as The Sanctuary.

The Sanctuary comprises 689 units of bungalows, semi-detached homes, town villas and high-end condominiums.

"These three-storey bungalows will constitute the final phase of bungalows undertaken on a 5.2ha site," said Ramzan.

There will be three designs with built-up areas of 4,300 sq ft, 5,500 sq ft and 6,200 sq ft. The units are priced from RM2.2 million up to RM4.9 million.

Ramzan expects a good mix of local and foreign buyers based on the sale of its first phase of similarly designed units of The Sanctuary.

"About 40 per cent of units were taken up by foreigners from Taiwan, India and China," he said, adding that the launch will be held before Chinese New Year.

Ramzan said other projects in the pipeline for 2008 include developing a serviced apartment on 2.03ha in Penang and the launch of 103 units of two- and-a-half-storey courtyard homes in Prai.

"We are looking to have a resort development project in Margaret River, Australia. We are currently seeking their local council's approval and hope to finalise it next month," he said.

He said the company had acquired 0.81ha of land in Mont' Kiara to design similar bungalow units found in The Sanctuary. "The selling prices could be 40 per cent higher because land prices are higher here," he said.

He added that Pasdec Corporation Sdn Bhd and a shareholder of Prima Prai Group had approved 168ha of prime beachland in Pahang on which Corner Side Realty plans to build a retirement home. - By Business Times

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