Magna Prima Forms JV to Launch SoHo Development in Johor Bahru

Property developer Magna Prima Bhd (KL:MAGNA) is expanding its southern footprint with a new small office/home office (SoHo) project in Johor Bahru, through a joint venture between its wholly owned subsidiary Twinicon Sdn Bhd and Crest Star Land Sdn Bhd.

The project, which will be built on a 3,457.5 square metre land parcel, marks Magna Prima’s latest move to tap into Johor Bahru’s growing demand for compact, dual-purpose residential and business spaces.

Under the agreement, Twinicon will own 75% of the newly formed special purpose vehicle (SPV) and take full charge of development, project management, and sales. Crest Star Land will hold the remaining 25% equity, while also securing a fixed entitlement of RM26.78 million upon project completion.

🏗️ Project Overview: A Strategic Compact Development in Johor Bahru

While detailed specs are pending, the SoHo project is expected to cater to:

• Young professionals

• Entrepreneurs and freelancers

• Short-term rental investors (including MM2H participants)

Located within Johor Bahru township, the site benefits from proximity to:

• The Johor–Singapore RTS Link (under construction)

• CIQ complex and Bukit Chagar

• Commercial hubs and educational institutions

Such developments are increasingly popular among:

• Cross-border workers

• Start-ups seeking affordable office space

• Buyers seeking dual-use units for income generation

📃 Key Terms of the Joint Venture (JV)

💼 Why Johor Bahru? Strategic Timing and Market Demand

The timing of this JV comes amid heightened investment and development momentum in Johor Bahru, fuelled by:

• The upcoming Johor-Singapore Special Economic Zone (JS-SEZ)

• Completion of the Rapid Transit System (RTS) by end-2026

• Soaring land values near RTS stations, with some hitting RM1,000–RM2,000 psf

The SoHo format aligns with urban lifestyle trends:

• Compact, flexible spaces with lower entry prices

• Popular for Airbnb, hybrid work, and cross-border leasing

• Lower maintenance and high-yield potential in tourism-heavy zones like JB

📈 Strategic Outlook for Magna Prima

This joint venture:

• Diversifies Magna Prima’s geographical exposure, as most of its flagship projects like The Avare (KLCC) and Boulevard Business Park (KL North) are concentrated in Klang Valley

• Leverages its development expertise while minimising land acquisition costs, as the land is contributed via JV

• Aligns with government-driven urban expansion and cross-border economic integration

The company’s share price closed unchanged at 55 sen, valuing Magna Prima at approximately RM220.81 million. The firm remains relatively quiet in terms of new launches in 2024–2025, making this Johor Bahru project a potentially strategic catalyst for earnings recovery and investor interest.

✅ Conclusion: Compact Growth Strategy in a Booming Corridor

With the Johor Bahru real estate market entering a new growth phase driven by infrastructure upgrades, foreign investment, and tourism revival, Magna Prima’s latest JV with Crest Star Land positions it to ride this wave with a compact, efficient, and in-demand property type.

The RM26.78 million fixed entitlement model also reflects a low-risk, high-return structure for Crest Star, while allowing Magna Prima to retain full control over design, pricing, and sales rollout.

This JV reflects a smarter growth strategy—focusing on well-located, right-sized projects instead of high-density speculative towers—and aligns well with evolving urban demand across southern Malaysia.