E&O, Mitsui Fudosan in RM348m Damansara Heights JV

E&O said the JV was expected to generate cash flow for the E&O Group whereby the cash together with the total consideration receivable by Ambangan Puri shall be used by the E&O Group for, among others, reinvestment in other projects, repayment of bank borrowings and working capital purposes.

KUALA LUMPUR: Eastern & Oriental Bhd (E&O) and Japan’s largest property developer Mitsui Fudosan Co Ltd are teaming up to build luxury residences in Damansara Heights here.

E&O, in a filing with Bursa Malaysia, said its indirect unit KCB Holdings Sdn Bhd (KCBH) and Mitsui Fudosan (Asia) Malaysia Sdn Bhd (MFAM), which is also an indirect unit of Mitsui Fudosan would be involved in the joint venture (JV). KCBH will hold a 51% stake in the new JV company and MFAM the remaining 49% in the JV.

“The development land enjoys a strategic address within the highly sought after Damansara Heights location and is slated to be developed into three-storey villas/condominiums totalling 54 units with a GDV of RM348mil.

“The development is expected to be launched in the second half of 2020 and will contribute positively to the earnings of E&O from 2021 onwards, ” E&O said in the statement on the project.

Under the corporate exercise, the JV company will ink a sales and purchase agreement with E&O’s indirect unit Ambangan Puri Sdn Bhd to purchase 14 plots of freehold land along Jalan Teruntung, Damansara Heights measuring 5,962.2 sq m for RM88.33mil.

Both shareholders are committed to advance a total of RM99.33mil in the 51:49 equity proportions to JV to fund the purchase of the land and for working capital purposes. KCBH will advance RM50.65mil and MFAM RM48.67mil.

E&O said the JV was expected to generate cash flow for the E&O Group whereby the cash together with the total consideration receivable by Ambangan Puri shall be used by the E&O Group for, among others, reinvestment in other projects, repayment of bank borrowings and working capital purposes.

The signatories for the JV were E&O managing director Kok Tuck Cheong and MFAM managing director Takehito Fukui.

Kok said E&O was honoured to partner Mitsui Fudosan, Japan’s renowned and reputable property developer.

“This is an extension of our earlier successful collaborations on The Mews & Conlay, two noteworthy luxury apartments in Kuala Lumpur City Centre.

“We are very excited to once again work closely with Mitsui Fudosan, with its vast experience and expertise, in the conceptualisation and development of this exciting new development.

“Our continuous collaboration represents a strategic partnership with an organisation that shares our vision and values of creating iconic communities of enduring value, ” he said.

Kok added this JV came at an opportune time as there is ongoing demand for exquisitely designed properties in the most prime locations and the prestige of the Damansara Heights district is what all other residential neighborhoods aspire to become.

“We experienced excellent take-up rate for our earlier projects in this location, namely Seventy Damansara and Idamansara, ” he said.