E&O, Majestic Gen propose RM189.9 mil acquisition of Jalan Kia Peng site for residential development

PETALING JAYA (July 31): Eastern & Oriental Bhd (E&O) and Majestic Gen Sdn Bhd have proposed to acquire a freehold Jalan Kia Peng site in Kuala Lumpur for RM189.9 million, further expanding E&O's premium residential development landbank in the capital.

It said in a Bursa Malaysia filing on Friday (July 31) that the acquisition will be undertaken by KP Urban Sdn Bhd, a joint venture in which E&O's wholly owned subsidiary KCB Holdings Sdn Bhd holds a 66.67% stake, while Golden Urban Nite Sdn Bhd, an affiliated company of Majestic Gen, owns the remaining 33.33%. Although KCB is the majority shareholder, KP Urban is accounted for as a joint venture because decisions on its relevant activities, including the approval of its business plan and budget, require unanimous consent from both shareholders.

Prime KLCC site earmarked for redevelopment

KP Urban entered into a sale and purchase agreement (SPA) with Twelve Kiapeng Sdn Bhd on Friday to acquire the 5,682 sq m freehold site together with a 30-storey condominium erected on it. The property, held under Geran 73351, Lot 239, Seksyen 58, Bandar Kuala Lumpur, carries an express condition restricting its use to condominium development.

According to E&O's Bursa Malaysia filing, the RM189.9 million purchase consideration was arrived at on a willing-buyer willing-seller basis after taking into account comparable market values, the site's location and its development potential.

KP Urban intends to fund the acquisition through a combination of bank borrowings and/or financing facilities, as well as shareholders' advances, with the final funding mix to be determined at a later stage.

In a separate press release, E&O said the site occupies a prime location within the Jalan Kia Peng-KLCC precinct, opposite The RuMa Hotel & Residences and adjacent to the Kuala Lumpur Convention Centre. It is connected to Suria KLCC and Pavilion Kuala Lumpur via covered pedestrian walkways, while KLCC Park, the Conlay MRT Station and Raja Chulan Monorail Station are within walking distance.

The group said the site is planned for a high-rise residential development that combines E&O's placemaking expertise with Majestic Gen's development capabilities.

Partners confident of long-term demand

Commenting on the acquisition, E&O managing director Kok Tuck Cheong said it strengthens the group's premium development portfolio and reflects its confidence in Kuala Lumpur's high-end residential market.

"The acquisition represents an important milestone in E&O's continued growth journey. Jalan Kia Peng is one of Kuala Lumpur's most established and desirable addresses, and securing this prime freehold site allows us to create another thoughtfully designed development that reflects E&O's commitment to placemaking, design excellence and enduring value," he said.

Majestic Gen group managing director Ta Wee Dher said the acquisition reflected the partners' shared confidence in the long-term appeal of the Jalan Kia Peng location.

"Jalan Kia Peng is a rare freehold address where scarcity, connectivity and long-term relevance align. The acquisition reflects our shared confidence in the enduring appeal of this location and provides the foundation for a disciplined, long-term development approach," he said.

No material FY2027 impact expected

According to the Bursa filing, the proposed acquisition is expected to strengthen E&O's future development pipeline through KP Urban and contribute positively to the group's future earnings upon the successful development of the site. However, it is not expected to have a material impact on the group's earnings, earnings per share, net assets or gearing for the financial year ending March 31, 2027.

The proposed acquisition is not subject to shareholder or regulatory approvals and is expected to be completed in the first quarter of 2027, subject to the fulfilment of the SPA's terms and conditions.

The SPA provides that vacant possession will be delivered no earlier than Feb 28, 2027, as the property currently has existing occupants. KP Urban had paid a 10% deposit of RM18.99 million prior to the SPA, with the balance payable within six months, subject to extension provisions.

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