KUALA LUMPUR, Eastern & Oriental Bhd (E&O) said its indirect wholly-owned unit, Hammersmith Properties Ltd, has proposed to sell two freehold land parcels in Hammersmith, London, to Varsity Capital 1 Propco Ltd for at least £75 million (RM427.8 million).
In a filing with Bursa Malaysia, E&O said the proceeds will be used for new property development and investment opportunities, or alternatively to pare down existing borrowings.
From the sale, about RM221.8 million (net of estimated expenses) has been earmarked for expanding its property business, including potential land acquisitions, joint ventures, or development rights. The sale and purchase agreement is expected to be completed within three years, with the proceeds fully utilised in that timeframe.
E&O added that the disposal is expected to generate a net gain of about RM239.3 million, after factoring in the reversal of impairment losses worth RM248.3 million and disposal expenses of RM6 million.
