KUALA LUMPUR, July 31 — Eastern & Oriental Bhd (E&O) and Majestic Gen Group are acquiring a piece of freehold land along Jalan Kia Peng, Kuala Lumpur, for RM189.90 million from Twelve Kiapeng Sdn Bhd.
In a Bursa Malaysia filing today, E&O said the acquisition is for a 0.56-hectare plot of land that includes a 30-storey condominium block.
It said the land acquisition will be undertaken by KP Urban Sdn Bhd, which is jointly owned by KCB Holdings Sdn Bhd, a wholly-owned subsidiary of E&O, with a 66.67 per cent equity interest, and Golden Urban Nite Sdn Bhd, an affiliated company of Majestic Gen Sdn Bhd, with the remaining 33.33 per cent equity interest.
E&O said KP Urban intends to fund the purchase through a combination of bank borrowing and/or financing facility to be obtained from a bank or other financial institutions, as well as shareholders’ advances.
“The final funding mix will be determined by KP Urban at a later stage after taking into consideration, among others, its gearing level, cash flow requirements and cost of funding,” it added.
The property developer said the proposed acquisition was in line with its business strategy to expand its land bank through KP Urban and strengthen its future development and sustainable growth.
“The acquisition of the Land will enable KP Urban to undertake a residential development project in a strategic location, thereby enhancing its project pipeline and future growth prospects, subject to the necessary approvals being obtained and prevailing market conditions,” it added.
E&O managing director Kok Tuck Cheong said the acquisition will further strengthen E&O’s premium development portfolio across Malaysia’s residential markets.
“More importantly, it reinforces our confidence in the long-term fundamentals of Kuala Lumpur’s high-end residential sector and our ability to create sustainable value for our shareholders,” he said.
Barring any unforeseen circumstances, the proposed acquisition is expected to be completed in the first quarter of 2027. — Bernama
