KUALA LUMPUR: Eastern & Oriental Bhd
’s (E&O) indirect wholly-owned subsidiary, Hammersmith Properties Ltd, has proposed to dispose of two freehold land parcels in Hammersmith, London, to Varsity Capital 1 Propco Ltd for a minimum cash consideration of £75mil or RM427.8mil.
In a filing with Bursa Malaysia, E&O said the proceeds from the proposed disposal will be used for potential property development and investment opportunities or, alternatively, to repay the group’s existing borrowings.
The company said it also plans to allocate about RM221.8mil (net of estimated expenses) from the disposal proceeds to expand its property development or investment business, which may include acquisition of landbank, joint ventures and development rights.
According to E&O, the proceeds from the disposal, which will be executed through a sale and purchase agreement, are expected to be fully utilised within three years of completion. It added that the transaction is expected to result in a net gain of about RM239.3mil. — Bernama
