Monday, 7 August 2017

(NST) E&O shareholders approve RM766m land sale to KWAP

KUALA LUMPUR (Bernama) --Eastern & Oriental Bhd (E&O) shareholders have approved the disposal of a development land portion at the Seri Tanjung Pinang Phase 2 (STP2) project to the Retirement Fund (Incorporated) (KWAP) for RM766.022 million.

Owned by E&O’s subsidiary, Tanjung Pinang Development Sdn Bhd (TPD), the land covers 20 per cent sale of net development land measuring 1.445 million square feet (sq ft) on Phase 2A of the STP2 (STP2A).

The approval was obtained at an extraordinary general meeting held today, E&O said in a statement.

E&O said the STP2A is the first phase of the 757.53ha STP2 reclamation project on the northeast coast of Penang island, for which TPD has been granted the concession rights to reclaim and develop. 

E&O Managing Director Kok Tuck Cheong said the support of E&O shareholders was an important milestone towards realising the TPD partnership with KWAP in developing the STP2A.

"We will use the proceeds from the land disposal to meet the funding requirements for STP2A reclamation and infrastructure works.

"The sale of the land will enable us to unlock the value of our investment in the STP2A, realise capital appreciation of the land and partially monetise our investment in STP2A," he said.

Kok said pursuant to the terms of the reclamation contract, these works were due to be completed within the second half of 2018, barring any unforeseen circumstances.

“We are targeting a first launch at STP2A in 2019, marking a significant new chapter in the E&O Group’s vision of creating an exemplar integrated master planned development,” said Kok.