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E&O completes RM308.9 mil London land buy

KUALA LUMPUR (March 16): Premium property developer Eastern & Oriental Bhd (E&O) announced today that it has completed its RM308.9 million (£57 million) acquisition of a 1.2 acre freehold land in Hammersmith, West London.

The acquisition was completed by E&O’s wholly-owned subsidiary, Eastern & Oriental Property (UK) Ltd (EOP UK) — the platform used to build E&O’s international presence.

Currently, the land hosts two connected office buildings — the 11-storey Thames Tower and the 15-storey Landmark House.

“While the commercial tenants at Landmark House are expected to generate rental income for EOP UK, this prime freehold parcel in the established commercial hub of Hammersmith, also represents a significant refurbishment of redevelopment opportunity for E&O in the future, which would include the possibility of creating Grade A office space and residential units, subject to relevant authority approvals,” said the property developer in a press statement.

The acquisition of the Hammersmith land means EOP UK now owns three prime property assets in London, worth a cumulative gross development value of RM1.4 billion (£269 million).

On its prospects going forward, E&O (fundamental: 1; valuation 0.6) said EOP UK will strategically optimise its capital outlay to extend its core competency in development management, whilst expanding the company in a prudent and disciplined manner.

“Towards this end, EOP UK is open to co-investing with reputable and like-minded partners who seek exposure in the resilient UK property market. Such joint ventures would enable the company to leverage on the combined strength of the entities, whilst garnering more significant overseas opportunities,” it added.

To date, EOP UK has three property assets in prime London locations, which together with the latest Hammersmith project, have a combined gross development value of about RM1.4 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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