KUALA LUMPUR: TA Global Bhd has scrapped a plan where it would use bulk of its proceeds from the sale of its development property in New South Wales, Australia to acquire either properties, assets or business.
In a revised statement to Bursa Malaysia on Monday, the property company said the plan is to use the A$245mil (RM810.70mil) in proceeds to reduce its bank borrowings and also plough part of the remaining funds as working capital for on-going property development project.
The total estimated proceeds of A$245mil was equivalent to RM832.19mil when it first announced the proposed on Aug 8 but the ringgit has since strengthened against the Aussie dollar.
TA Global said it had scrapped its plans to use the A$100mil (RM339.67mil as at Aug 8) to acquire properties/assets/business.
Instead it plans to use A$180mil (RM595,62mil) to repay the bank borrowings within six months instead of A$120mil as planned earlier. This will enable it to reduce the group's total borrowings of more than RM1bil as at Sept 30, 2017.
TA Global also plans to use A$46mil (RM152.21mil) as working capital for on-going property development projects instead of A$20mil earlier.
Recall that on Aug 9, TA Global had entered into a put and call option with Karimbla Properties Pty Ltd to dispose of the Little Bay Cove project.
The project is a 135,961.6 square meter (33.6 acre) freehold residential development master plan located towards the southern end of the Eastern Suburbs in the suburb of Little Bay, just south of Malabar in New South Wales, Australia.
In the latest update, TA Global said it would utilise A$32.4mil as working capital for the development of 179 high-end apartments under the Illume project.
It would also use A$13.6mil as working capital to fund the development cost of the several projects.
The projects include mixed-development project known as TA3 & 4 (comprising a 480-key hotel and 308 units of serviced apartments within two tower blocks) in Kuala Lumpur City Centre; mixed-development project known as Ativo Suites in Damansara Avenue (comprising 668 units of serviced residences within two tower blocks with retail shops at the podium) located in Petaling Jaya; and a residential project (comprising of 364 residential units within two condominium blocks) located in Dutamas, Petaling Jaya.
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