KUALA LUMPUR: Gamuda Bhd, in partnership with Castleforge Partners Ltd via Venta Belgarum II Ltd Partnership (VB II), signed a sale and purchase agreement to acquire 100 per cent equity interest in Wessex Winchester Propco Ltd (Prop Co), owner of Winchester House, for a total cash consideration of £257 million (RM1.39 billion) from Wessex Winchester Ltd Partnership.
VB II is a 75:25 development partnership where Gamuda holds the higher stake, formed between the wholly owned subsidiary of Gamuda in Labuan namely, Gamuda Land (Labuan) Ltd and Castleforge’s 100 per cent partnership entity, Athelstan Ltd.
In a filing with Bursa Malaysia today, Gamuda said the group and Castleforge, via VB II have negotiated a favourable payment schedule to the vendor, of which only £20 million (RM108 million) out of the total consideration of £257 million is payable upon signing of the sale and purchase agreement, with the remaining balance to be funded by non-recourse debt and final payment within 24 months of exchange.
"Upon completion of the proposed acquisition, Gamuda will effectively own 75 per cent of Prop Co, with the remaining 25 per cent owned by a Castleforge fund, Castleforge Partners IV Ltd Partnership, and Castleforge shall also serve as the development manager,” it said.
Gamuda said it intends to syndicate part of its 75 per cent equity stake to interested investors post completion of the proposed acquisition.
"The proposed acquisition is part of Gamuda Land's quick-turnaround-projects (QTP) strategy, which aims to build a regional portfolio of real estate projects with high internal rate of returns, with investment timeframes of five years or less.
"The QTP strategy is intended to diversify the portfolio, maximise returns on capital and grow Gamuda Land's geographical presence beyond Malaysia,” it added. - Bernama