Amcorp Properties in UK joint-venture development

By THE STAR

PETALING JAYA: Amcorp Properties Bhd has entered into a joint-venture (JV) agreement with Hotel Properties Ltd to jointly develop 0.8ha in the United Kingdom with a gross development value in excess of RM2.83bil.

The proposed high-rise development consists of 72 residential apartments and 78 basement car parks with a total floor space of 175,000 sq ft.

The agreement will see Amcorp unit Campden Global Ltd (CGL) signing a members’ agreement with Clan Campden Developments LLP and GCH Investments LLP, with each having an equal stake in the JV entity undertaking the proposed project, NLG Campden LLP.

Simultaneously, NLG Campden also signed an agreement to acquire the entire interest in Clan Kensington LLP, which owns 50% interest in GC Campden Hill LLP (GCCH), the owner of the freehold land. Singapore-listed Hotel Properties holds the remaining 50% in GCCH.

The acquisition would be partly funded by bank borrowings and member fundings, said Amcorp in its Bursa Malaysia announcement.

“In the event that the bank financing for the acquisition of the property is not secured, the total member funding commitment in NLG Campden will increase to £97.25mil (RM496.49mil) and each member’s funding would increase to fund the shortfall,” the company said.

The maximum funding commitment and requirement of CGL is £32.42mil (RM164.03mil), the company added.

The proposed project is located to the north of Kensington High Street in the Royal Borough of Kensington and Chelsea (RBKC), where the main shops and facilities of Kensington are located, along with the High Street Kensington Tube Station and numerous bus routes to the east and west of London.

GCCH had acquired the freehold interest from RBKC for £105mil (RM531.30mil), subject to a leaseback to RBKC.

Thereafter, RBKC will vacate the proposed development and GCCH will pay the balance of the consideration of £98.85mil (RM500mil) due.

– Malaysia Property News

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