Magma Group Announces Positive Withdrawal from Legal Proceedings, Sets Stage for a New Beginning

Magma Group Berhad (“Magma” or the “Company”), a dynamic investment holding group, today announced a significant development in the Company’s ongoing legal proceedings.

Dato' Sri Thomas Liang Chee Fong, Managing Director of Magma
Dato’ Sri Thomas Liang Chee Fong, Managing Director of Magma

During the Case Management held on 9 January 2024, the Court granted permission for Public Bank Berhad (“the Plaintiff”) to withdraw the Suit against the Defendants, which includes Astaka Mekar Sdn Bhd, a wholly-owned subsidiary of Magma. This withdrawal is executed with the liberty to file afresh and without any order as to costs, marking a pivotal moment for the Company.

The Suit, originally filed by Public Bank Berhad against Magma Group Berhad’s subsidiaries and associated parties, stemmed from disputes regarding the settlement of outstanding sums under various Term Loan Facilities and Overdraft Facility. The Plaintiff had sought substantial repayments, including accrued interest, from the Defendants under these facilities.

In the positive turn of events, the Court had allowed for a withdrawal of the Suit, signals a hopeful stride for Magma Group Berhad. It offers an avenue for the Company to recalibrate its focus and strategies for future opportunities, untethered from the constraints of this protracted legal battle.

Dato’ Sri Thomas Liang Chee Fong, Managing Director of Magma Group Berhad, expressed his views on this development: “This decision marks a watershed moment for Magma Group Berhad. It allows us to start afresh, leaving behind the challenges we’ve faced in the legal arena. Our focus now shifts to harnessing new opportunities and reinforcing our commitment to sustainable business growth. We are optimistic about the future and are poised to explore new avenues that align with our strategic objectives.”

Magma remains steadfast in the Company’s commitment to uphold strong corporate governance and ethical business practices. The Company believes that this new chapter will enable it to strengthen its market position and deliver greater value to its shareholders and stakeholders.

The Company will continue to provide updates on further developments in due course.

As at 10 January 2024, 12:30 P.M., the share price of Magma stood at RM0.270, representing a market capitalisation of RM255.2 million.


Topic: Press release summary

Magma Equities Acquires 202-Unit Apartment Community in Fayetteville, NC for $23.7 Million

LA-based multifamily investment firm opens Charlotte, NC office to Manage Continued Growth in North Carolina and the Southeast

Keystone Apartments

Keystone Apartments

MANHATTAN BEACH, Calif.April 26, 2022PRLog — Magma Equities (“Magma”) in joint venture with Prudent Growth Partners (“Prudent Growth”) has acquired Keystone Apartments (Keystone), a 202-unit multifamily community in Fayetteville NC, in an off-market transaction for $23.675 million.

Magma is one of the most active multifamily investors in North Carolina. Keystone is the firm’s 18th acquisition in the state over the past four years and its third acquisition in North Carolina this year.

To facilitate its continued growth in the southeast and establish more operational oversight as the firm grows its local portfolio, Magma has opened a regional office in Charlotte under the direction of Chris Herrlinger, Director of Asset Management.

“As we expand our investment platform in North Carolina and surrounding markets, it was a logical and inevitable step to have boots on the ground on in the state,” said Magma Founder and Managing Principal Ryan Hall. “Not only will we be able to better identify investment opportunities in key multifamily markets within the area, the new office allows us to further our current relationships there and develop new ones.”

Constructed in 1974 and renovated in stages from 2018 through 2021, Keystone’s one- and two-bedroom apartment homes are housed in 28 two-story residential buildings on a low-density 19.13-acre site.

“This is a great addition to our multifamily portfolio and we are thrilled about partnering with Magma on this project,” said Tom Hahn, President of Prudent Growth. “This property is our fourth apartment buy in Fayetteville, and we are excited to be expanding our footprint there.”

The Magma-led joint venture plans to spend $1.5 million renovating units and improving the common areas (leasing office, fitness, pool area and other outdoor amenities) to better position the property to compete in this submarket, which continues to draft off of the growth in Raleigh-Durham.

“Keystone represents another opportunity to acquire a value-add opportunity with plenty of upside and potential for growth,” Herrlinger added. “With a limited supply of new construction in the pipeline and the market’s solid market dynamics, this property is an outstanding addition to our portfolio.”

About Magma Equities

Manhattan Beach, CA-based Magma Equities (http://www.magmaequities.com) is a diversified real estate organization focused on re-positioning Class A & B apartment communities throughout the country. Magma strives to maximize returns for investors while providing residents with homes that are environmentally friendly, efficient, and state-of-the-art. Investment decisions are based on Magma’s successful experience in the past, and more importantly, vision for the future.

About Prudent Growth Partners

Prudent Growth Partners, LLC is a private equity real estate investment company based in Chapel Hill, NC. The firm focuses on properties that tend to be overlooked by larger institutions and which provide exceptional returns on invested capital along with the possibility of longer-term capital gains achieved by expert management and future price appreciation.

Contact

Bruce Beck

DB&R Marketing Communications, Inc.

***@dbrpr.com

Magma Equities Teams with Franklin Templeton on Dallas Multifamily Acquisition

Palencia Apartment Homes

Palencia Apartment Homes

MANHATTAN BEACH, Calif.April 6, 2022PRLog — Magma Equities (“Magma”), in a joint venture with funds managed by Franklin Templeton (“Franklin Templeton”), has acquired Palencia Apartment Homes, a 281-unit apartment community in north Dallas, its fourth multifamily investment in the Dallas/Ft. Worth metro since opening a regional headquarters here late last year.

Palencia Apartment Homes’ studio, one- and two-bedroom apartment homes are housed in nine three-story residential buildings on a 9.61-acre site. Common area amenities include two swimming pools, a clubhouse, fitness center, business center, and picnic and grilling area.

The Magma led joint venture plans to create value through improved management operations and physical improvements to approximately half the units that have not been significantly upgraded since the project was constructed in 1996.  Improvements will include the installation of stone countertops, stainless steel appliances (as needed), subway tile backsplashes, new cabinet fronts, modern lighting packages, and washer & dryers.

The property is located at 17817 Coit Road in Plano West/North Dallas, one of Dallas-Fort Worth’s most rapidly growing submarkets. The property benefits from numerous demand drivers including the area’s highly ranked Plano Independent School District, upscale shopping, abundant dining and numerous outdoor recreational amenities. Located just south of the George Bush Turnpike and equidistant between I-75 and Dallas North Tollway, Palencia Apartment Homes affords residents access to many of the metroplex’s major employment hubs, including Downtown Dallas, Toyota Headquarters, Telecom Corridor, Legacy West, The Platinum Corridor, International Business Park and FedEx Corporate Campus. It is also situated on the DART/ UTD bus line, close to University of Texas at Dallas and the new Texas A&M Agricultural Campus.

With its roots in California and now with an office in Dallas, Magma continues to grow its multifamily portfolio, particularly throughout the Southwest and Southeast United States, focusing on both Class A and value-add Class B garden-style communities ranging in size from 150 to 400 units. Since mid-2021, the firm has opened new markets in Dallas, Charlotte, and Knoxville, TN, acquiring nearly $300 million in assets totaling 1,500+ units with an additional 2,000+ units closing in the near future.

“In addition to a growth strategy that includes a wealth of experience in this asset class and a sophisticated investor base, our new Dallas office has allowed us to become nimbler and more responsive locally,” said Magma Partner Tom Short who heads the Dallas office. “As a result, we have a robust pipeline of deals in Texas expected to close within the next few months that will more than double our holdings in the state.”

“Palencia represents what Franklin Templeton is looking to achieve with our strategy of buying high quality properties in partnerships with best-in-class operators like Magma,” said Tyler Brown, Vice President – Private Real Estate at Franklin Templeton.

About Magma Equities

Manhattan Beach, CA-based Magma Equities (http://www.magmaequities.com) is a diversified real estate organization focused on re-positioning Class A & B apartment communities throughout the country. Magma strives to maximize returns for investors while providing residents with homes that are environmentally friendly, efficient, and state-of-the-art. Investment decisions are based on Magma’s successful experience in the past, and more importantly, vision for the future.

Contact

Bruce Beck

DB&R Marketing Communications, Inc.

***@dbrpr.com

Magma Equities and Franklin Templeton Acquire Charlotte, NC Apartment Community for $79.25 Million

Cameron Southpark

Cameron Southpark

MANHATTAN BEACH, Calif.Jan. 5, 2022PRLog — Magma Equities (“Magma”) in joint venture with funds managed by Franklin Templeton has acquired in an off-market transaction, Cameron SouthPark, a 309-unit apartment community in Charlotte, NC for $79.25 million.

Constructed in 1984 and renovated in 2016, Cameron SouthPark’s one- and two-bedroom apartment homes are housed in 26 three-story residential buildings on a low-density 35-acre site.  Common area amenities include two resort-style swimming pools, each with an expansive sundeck with grills and outdoor kitchen; a large clubhouse with fitness center; sand volleyball, basketball and tennis courts; and dog park.

The Magma-led joint venture plans to create value through improved management operations and physical improvements that include upgrades to the property’s exterior, common areas and unit interiors.

The property is located at 6316 Forest Lane in SouthPark, one of Charlotte’s most desirable neighborhoods.  The property benefits from numerous demand drivers including SouthPark’s highly acclaimed Charlotte-Mecklenburgh School District, numerous outdoor recreational amenities, and retail options including the 1.6 million-square-foot SouthPark Mall, the largest shopping center in North Carolina.  In addition to its location within one of the region’s primary employment nodes, the property is less than a 30-minute commute to more than 200,000 jobs in Downtown Charlotte and University City, via Interstate 77 as well as the nearby Tyvola Light Rail Station on the LYNX Blue Line.

For Magma, a national multifamily investment firm with $1.4 billion in assets under management, Cameron SouthPark represents its first investment in Charlotte.  The firm’s North Carolina portfolio includes 3,600 units located primarily in Raleigh/Durham.

With its roots in California, Magma continues to grow its multifamily portfolio, particularly throughout the South and Southeast United States focusing on both Class A and value-add Class B garden style communities ranging in size from 150 to 400 units.   In the past six months the firm has opened new markets in Charlotte, Dallas TX, and Knoxville, TN acquiring nearly $250 million in assets totaling 1,500 units.   To support its growth, the firm recently opened a regional headquarters in Dallas, TX.

“We continue to build an internal infrastructure and sophisticated investor base that has allowed us to pursue larger and more complex multifamily investments like Cameron SouthPark,” said Founder and Managing Principal Ryan Hall.   “Our new Dallas office also will help us expand into new markets throughout Texas and the Central U.S.”

“Franklin Templeton looks to buy high quality properties in excellent locations while partnering with best-in-class operators and this fits well within with our strategy,” said Vice President of Acquisitions Tyler Brown. “This was our first acquisition with Magma and hope to do several more deals like Cameron SouthPark with them.”

About Magma Equities

Manhattan Beach, CA-based Magma Equities (http://www.magmaequities.com) is a diversified real estate organization focused on re-positioning Class A & B apartment communities throughout the country. Magma strives to maximize returns for investors while providing residents with homes that are environmentally friendly, efficient, and state-of-the-art. Investment decisions are based on Magma’s successful experience in the past, and more importantly, vision for the future.

Contact

Bruce Beck

DB&R Marketing Communications, Inc.

***@dbrpr.com

Magma Equities Acquires Two Multifamily Properties in Dallas/Ft. Worth

Opens regional headquarters in Dallas under the direction of Tom Short who joins the firm as partner

Verandas At City View

Verandas At City View

LA CANADA FLINTRIDGE, Calif.Nov. 23, 2021PRLog — Multifamily investment firm Magma Equities (“Magma”) in two separate off-market transactions has acquired apartment communities in Dallas and Fort Worth representing 562 apartment homes, two of five acquisitions the firm expects to close in the Dallas/Fort Worth MSA by year end.

To support its growing investment activities in Texas and the Central U.S., Magma has also announced that it has established a regional headquarters in Dallas, TX under the direction of Tom Short who has joined the firm as partner.

“No matter how large or sophisticated you are, real estate remains a local business,” said Magma Managing Principal Ryan Hall.   “The new Dallas office under Tom’s leadership will help us to meet our goal of building a significant portfolio with several thousand units under management in the next 24 months,” said Hall.

A graduate of Southern Methodist University, Short has spent his entire 13-year commercial real estate career in the Dallas/Fort Worth Metro, executing on approximately $2.2 billion in transactions.  Prior to joining Magma, Short founded Arch Investment Group, which partnered with a family office to invest in multifamily and industrial real estate throughout Texas.

“While our focus will continue to be on value-add multifamily investments, we will also look at buying Class A communities as well,” said Short.  “We will be looking at opportunities between $20 million and $200 million in all major Texas markets with a specific focus on the Dallas/Fort Worth Metro in the near term. We are also looking to expand into other high growth markets in Colorado, Georgia, and Florida while continuing to add to our holdings in North Carolina and Tennessee.”

Verandas at City View is a gated 314-unit apartment and townhome community located at 7301 Oakmont Boulevard in the Fort Worth suburb of Benbrook, nine miles southeast of downtown Fort Worth.   Built in 2002, the property offers a variety of one,- two- and three-bedroom floor plans housed in 15 low rise residential buildings on a large 14.7-acre site.  Common area amenities include clubhouse, swimming pool and spa, fitness and business centers.

Built in 1974, the 248-unit Vista Azul is located at 2911 Clydedale Drive, 10 miles north of Downtown Dallas.  Encompassing an entire city block, the low-rise garden-style property consists largely of one- and two-bedroom apartment homes, with a clubhouse, fitness center and picnic and grilling areas.

Both properties were acquired in joint venture with long-time partner Cincinnati-based private equity real estate investment firm Viking Partners.  The Magma-led JV will immediately begin a multimillion dollar capital improvement program to improve interiors, exteriors and common areas across the two-property portfolio.

“Texas has long been a target market for us and based on our previous experience with them in North Carolina and Tennessee, we trust in Magma to deliver in Texas risk adjusted yields that meet our return profile,” added Viking Partners Principal Bret Caller.

About Magma Equities

Manhattan Beach, CA-based Magma Equities (http://www.magmaequities.com) is a diversified real estate organization focused on re-positioning Class A & B apartment communities throughout the country. Magma strives to maximize returns for investors while providing residents with homes that are environmentally friendly, efficient, and state-of-the-art. Investment decisions are based on Magma’s successful experience in the past, and more importantly, vision for the future.

ABOUT VIKING PARTNERS

Viking Partners was founded in 2008 and has acquired approximately $1.2 billion of real estate across all asset types including multifamily, office, retail, hospitality, and industrial/flex.  Headquartered in Cincinnati, Viking Partners is currently seeking acquisition opportunities in the Midwest, Mid-Atlantic, Southeast, Southwest, and Mountain West.

Contact

Bruce Beck

DB&R Marketing Communications, Inc.

***@dbrpr.com