Amcorp Properties plans HK entry via JV with Grosvenor Asia

KUALA LUMPUR (Dec 21): Amcorp Properties Bhd (AmProp) is planning to venture into the Hong Kong property market via a tie-up with Grosvenor Asia Pacific Ltd.

Under a co-investment agreement inked between Grosvenor Asia and AmProp's indirect wholly-owned unit Amcorp Orient Ltd today, a joint venture company (JVco) known as GDPHK Holdings Ltd will be formed.

The entity will "invest in a portfolio of value-add as well as redevelopment and development projects" in Hong Kong, AmProp's bourse filing today said.

Both Amcorp Orient and Grosvenor Asia will contribute about RM201 million (HK$349 million), each, as capital to the JVco.

Grosvenor Asia, said AmProp, is a wholly-owned unit of Grosvenor Group Ltd, one of the world's largest private international property groups.

The co-investment agreement shall be for seven years, and can be extended by another two years.

"Following AmProp Group's profitable ventures in London and Japan, the co-invest is part of the group's strategy to diversify its property investment and development portfolio and as an impetus towards its quest to embark on niche developments in high growth international markets," said AmProp.

AmProp said the capital commitment to the JVco will be funded by a combination of AmProp's internal funds and bank borrowings.

It expects the co-invest to contribute positively to its future earnings and growth. — theedgemarkets.com