PETALING JAYA: Amcorp Properties Bhd (AmProp) is looking to venture into Hong Kong’s property market through a collaboration with Grosvenor Asia Pacific Ltd.
In its filings with Bursa Malaysia, the property development and engineering services company said its wholly owned subsidiary - Amcorp Orient Ltd - had on Wednesday entered into a co-investment agreement with Grosvenor to form a joint-venture company (JVco) known as GDPHK Holdings Ltd for the purpose of investing in a portfolio of value-add as well as redevelopment and development projects in Hong Kong.
Amcorp Orient and Grosvenor Asia would each contribute about HK$349mil (RM201mil) as capital to the equally-owned JVco.
“Following AmProp Group’s profitable ventures in London and Japan, the co-invest is part of the group’s strategy to diversify its property investment and development portfolio, and as an impetus towards its quest to embark on niche developments in high-growth international markets,” the group said when explaining its rationale for the proposed collaboration.
“Through the co-invest, AmProp Group would be able to leverage on the experience and branding of Grosvenor Asia in Hong Kong,” it said.
Grosvenor, which is a wholly owned unit of Grosvenor Group Ltd, one of the world’s largest private international property groups, has been operating in Asia Pacific for about two decades. It established its first office in Hong Kong in 1994.
AmProp said the co-investment agreement would be in force for seven years and could be further extended by up to two years upon the unanimous approval of the JVco’s board of directors.
It said the capital commitment to the JVco would be funded by a combination of internally generated funds and bank borrowings.
AmProp said it would expect the co-investment to contribute positively to its future earnings and growth.
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