TA Global to sell Sydney coastal land for RM828mil

KUALA LUMPUR: TA Global is seeking to sell the remaining 24.26 acres of  undeveloped land at its Little Bay Cove development in Sydney, Australia, for A$245mil (RM827.8mil).

In a filing with Bursa Malaysia, the property development and investment group said it stood to gain about A$102mil (RM344.9mil) before tax from the disposal of the freehold residential land to Karimbla Properties (No 50) Pty Ltd (KPPL), a unit of Meriton Properties Pty Ltd.

The Meriton group is said to be Australia’s largest residential apartment developer.

TA Global said the landowner, its wholly-owned subsidiary TA Little Bay Pty Ltd, had entered into a put and call option deed with KPPL for the proposed disposal.

The entire Little Bay Cove project spans 33.6 acres in the suburb of Little Bay, just south of Malabar in New South Wales. It is believed to be TA Global’s only ongoing property development project in Australia.

On the rationale for the proposed disposal, TA Global said it would be able to unlock the value of the property which was currently pending development at about 29% premium to the indicative valuation as appraised by m3property (NSW) Pty Ltd.

It said the proposed deal would also provide an avenue to raise funds for ongoing property development projects, future acquisition of properties/assets/businesses and repayment of bank borrowings.

Of the A$245mil gross proceeds, TA Global will set aside A$120mil (RM405.9mil) to repay bank borrowings, A$100mil (RM338.3mil) to buy properties, assets or businesses and A$20mil (RM67.7mil) for working capital.

According to TA Global’s latest annual report, the group has 750 acres of land bank both locally and internationally that it will gradually develop into residential, commercial or mixed development.