PETALING JAYA: TA Global Bhd has obtained shareholders approval for the disposal of its development property in Little Bay, New South Wales, Australia, to Karimbla Properties (No. 50) Pty Ltd for a cash consideration of AUD245mil (RM794.02mil).
Little Bay Cove is a 33.6-acre freehold residential development master plan located towards the southern end of the Eastern Suburbs in the suburb of Little Bay.
The disposal involves the remaining undeveloped land comprising eight development lots and 26 house lots with a total land area of 24.26 acres.
The project is a Master Planned Residential Estate which is subdivided into 10 development lots and 28 house lots within the enclave of parks, recreation areas, pedestrian pathways and viewing lookouts.
It comprises a diverse range of 582 units, comprising apartments, townhouses, semi-detached and free-standing houses.
The proposed disposal will enable the company to unlock the value of the eight development lots and 26 house lots, which are currently pending development at about 29% premium to the appraised valuation, with an estimated gain after tax arising from the proposed disposal of AUD71.43mil (RM231.49mil).
The proceeds from the proposed disposal have been earmarked for ongoing property development projects and repayment of some of TA Global’s existing borrowings.
After the repayment of bank borrowings amounting to AUD180mil (RM583.36mil), TA Global’s overall gearing level will be reduced from 0.85 times to a manageable level of 0.61 times.
This will provide greater financial flexibility for the company to seek viable investment opportunities in hotels, properties and development land as the opportunity arises.
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