KUALA LUMPUR: Eastern & Oriental Bhd’s (E&O) UK unit Hammersmith Properties Ltd plans to dispose of two freehold land parcels in Hammersmith, London, to Varsity Capital 1 Propco Ltd for £75 million (RM427.8 million).
In a filing with Bursa Malaysia, E&O said the proceeds will be channelled towards potential property development and investment opportunities, or alternatively to pare down existing borrowings.
The group plans to allocate about RM221.8 million from the proceeds to expand its property development or investment business, which may include acquisition of landbank, joint ventures and development rights.
E&O expects the proceeds from the disposal, which will be executed through a sale and purchase agreement, to be fully utilised within three years of completion.
The transaction is expected to generate a net gain of about RM239.3 million after accounting for the reversal of impairment losses of RM248.3 million.
The group also estimates disposal-related expenses of about RM6 million in the financial year the deal is completed.
© New Straits Times Press (M) Bhd
