AmProp to pump €15 mil more into JV with Grosvenor Group in Spain

KUALA LUMPUR (Jan 5): Amcorp Properties Bhd (AmProp) has agreed to put an additional €15 million (RM72.45 million) as capital into its 50:50 real estate joint venture (JV) in Spain with Grosvenor Group Ltd.

The initial JV agreement was inked in July last year by AmProp unit, Amcorp Horizon Sdn Bhd (AHSB), with Grosvenor Group's indirect wholly-owned unit, Grosvenor Europe Investments Ltd (GEIL). At the time, the capital commitment of each party in the JV company that was set up — Urban Value Add I (Spain), S.L — was capped at €35 million (equivalent to approximately RM169.043 million).

Yesterday, the parties inked a variation letter agreement to push up the cap by €15 million, each. This will bring the new cumulative capital commitment in the JV from €70 million to €100 million.

"Since its establishment, the JV Co has successfully secured four projects to its portfolio in Madrid, Spain. All these projects are planned for residential-led redevelopment. Due to the improving market outlook and pipeline of deals, the JV parties have mutually agreed to increase their capital commitment to enable the JV Co to pursue additional projects during the extended JV term," AmProp's filing yesterday read.

AmProp said it intends to fund the additional capital commitment via a combination of the group's internal funds, proceeds from a proposed rights issue of redeemable convertible preference shares, and bank borrowings.

As of closing yesterday, AmProp's share price was unchanged at 75 sen with about 54,000 shares traded, giving it a market capitalisation of RM444.6 million. — theedgemarkets.com

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