Amcorp to co-invest RM421.2m with HK firms

KUALA LUMPUR: Amcorp Properties Bhd, together with Hong Kong’s Grosvenor Asia-Pacific Ltd and Nan Fung Group, will invest US$130 million (RM421.2 million) in a portfolio of high-end property projects in Tokyo, Japan.

In a filing with Bursa Malaysia yesterday, Amcorp Properties said its wholly-owned subsidiary, Amcorp Far East Ltd, will invest US$50 million in a joint venture (JV) company to pursue its investment there.

Amcorp Far East yesterday entered into a co-investment agreement with Grosvenor and Nan Fung Group, which consists of NRJ Investment Ltd and True Lead Investment Ltd, to invest in a high-end residential real estate development and commercial value-add projects.

Prior to this, the co-investors will procure the incorporation of a JV private limited company in Hong Kong, to be named Grosvenor Development Partnership Ltd (Grosvenor Ltd), for the purpose of the investment. Grosvenor Ltd will be appointed the manager of the JV company to manage and report on its activities.

“Each co-investor’s shareholding interest in the JV shall be based on its capital contributions,” said Amcorp Properties. Amcorp Properties and Grosvenor Asia-Pacific will each hold a 38.5% stake in Grosvenor Ltd, contributing US$50 million each. The remaining 23% will be owned by Nan Fung Group with its contribution at US$30 million (RM97.2 million).

The capital commitment of Amcorp Far East will be funded by advances from Amcorp Properties, internal funds and bank borrowings.

It is worth noting that Hong Kong- based Amcorp Far East is wholly-owned by Mawar Delima (M) Sdn Bhd, which in turn is a wholly-owned subsidiary of Amcorp Properties.

Grosvenor Asia-Pacific is involved in property investment and development, while NRJ and True Lead are part of a privately held group of companies and business interests carrying on the business of property development in China under the business or trade name of Nan Fung.

Amcorp Properties said the co-investment 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.

Its counter climbed to an all-time high of RM1.01 on Tuesday. It closed 1.51% lower at 98 sen yesterday.

This article first appeared in The Edge Financial Daily, on April 18, 2014.


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