Amcorp Properties JV to finalise first HK purchase
19 Jan 2018
Amcorp Properties Bhd expects its Hong Kong joint venture, which focuses on en-bloc buildings in good locations, to decide on the first acquisition there by the first quarter of 2018.
In its circular to shareholders yesterday, it said the JV, whose objective is to seek such property with value-added potential, expects the acquisition to be at HK$360mil (RM182mil).
As for its ongoing Sibujaya township development near Sibu airport in Sarawak, it would continue to develop the remaining land bank of over 622 acres over 10 years.
On its renewable energy division, Amcorp was adding further capacity with the upcoming commissioning of the 20MW hydro plant in Sungai Liang in 2018. This will increase its annual power generation to 120GWh per annum.
Commenting on its UK operations, Amcorp said its Burlington Gate and Holland Park Villas, both high end residential developments with a gross development value (GDV) of £270mil and £611mil respectively, have now been physically completed.
It said the units were in the midst of being delivered to buyers progressively since September 2017.
“The remaining premium units and penthouses for both projects with an estimated sales value of £198mil which are being released to the market will add to our results in the coming months,” it said.
In May 2016, Amcorp and its strategic international partners completed the acquisition of Bankside Yards in Southbank, London.
“This project with a GDV in excess of £1bil involves a comprehensive redevelopment scheme into a world class residential led mix development project with the existing planning permission being further refined for a total area close to 1.1 million sq ft,” it said.
As for its Kilmuir House, an apartment block in the heart of Belgravia, Amcorp said plans are to build a high end new built residential development.
“Both these projects located in prime central London are expected to see continued interest and demand from both local and foreign investors,” it said.
On its joint venture with Grosvenor in Spain, they had added four projects to its portfolio in Madrid. All these projects are planned for redevelopment into residential units and has a total estimated GDV of €145mil.
Amcorp said due to the improving market outlook and pipeline of deals, the group and its partner had on Jan 4 agreed to inject up to a further €15mil each to bring the equity of the fund to a total of up to €100mil.
Amcorp issued the details of the
projects and their progress in the circular to shareholders where it is seeking
a go-ahead to undertake a rights issue to raise gross proceeds of between
RM350mil and RM597.2mil. The EGM will be held on Feb 9.
As for the reference price of the redeemable convertible preference shares, it is expected to be about 80 sen.
Based on the minimum scenario of RM350mil, it said RM95.9mil would be used for existing property development projects and investments and RM14.1mil for future property development projects and working capital.
Based on the maximum scenario of RM597.2mil, it would use RM95.9mil for existing property development projects and investments and RM261.3mil for future property development projects and working capital.
Source: The Star