PETALING JAYA: Sime Darby Property Bhd
(SimeProp), via its wholly-owned subsidiary, Sime Darby Property (Hong Kong) Ltd (SDPHK), has entered into an interest-bearing loan agreement to provide shareholders’ advances of £10mil (RM58mil) to Battersea Project Holding Co Ltd (BPHCL).
The agreement is to fund future phases of the Battersea Power Station development in London, United Kingdom.
BPHCL, the holding company for the development, is a joint venture in which SDPHK holds a 40% equity stake.
“The shareholders’ advances have a tenure of five years. Interest shall be charged based on Sterling Overnight Index Average rate plus 1.5% per annum.”
SimeProp said the loan will be funded via its existing financing facilities.
The board sees no specific risks from the loan, beyond BPHCL’s general business risks in UK property development.
