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PETALING JAYA (Aug 6): Eastern & Oriental Bhd (E&O) said its indirect 66.67%-owned joint venture, KP Urban Sdn Bhd, intends to redevelop a 5,682 sq m freehold site near KLCC into a residential project for sale. The proposed redevelopment may involve demolishing the existing 30-storey condominium on the site, subject to the necessary approvals and permits.
In additional information filed with Bursa Malaysia on Wednesday (Aug 5), E&O said the proposed redevelopment remains at a preliminary planning stage. The group has yet to finalise the development concept, project name, unit mix, estimated development cost, expected commencement date and projected profits. It has also not obtained development order or building plan approvals, and said progress currently stands at 0%.
The condominium, which received its Certificate of Completion and Compliance on Dec 21, 2011, is currently occupied. E&O said the land is intended to be redeveloped into residential units for sale to the public.
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The group also said an independent valuation by CBRE assessed the property's market value at RM200 million as at July 27, about RM10.1 million higher than the RM189.9 million purchase consideration agreed under the SPA.
E&O said the proposed development is expected to be funded through a combination of internally generated funds, shareholder advances and/or bank borrowings. It added that borrowings undertaken by the joint venture would not affect the group's reported gearing because the venture is accounted for using the equity method.
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