E&O purchases UK property for £20.3m

KUALA LUMPUR (April 24): Property developer Eastern & Oriental Bhd (E&O) has proposed to acquire an office-cum-retail building known as Princes House in London, UK for £20.3 million (RM100.19 million).

E&O said the acquisition provides an immediate avenue to rental income. Additionally, there is an opportunity to refurbish the existing building, or potentially redevelop it into serviced suites or residential apartments.

The company said the acquisition is also in line with its intention to establish an office in London for it to exhibit and market its projects. The purchase will also allow E&O to explore business opportunities in the UK.

It said the purchase consideration was based on a market valuation, in addition to the investment prospects of the property.

E&O said the property is close to popular locations such as Covent Garden Market, Royal Opera House and several renowned universities.

However, it is only 10% occupied while a total lettable space of 41,446 sq ft remain untenanted. The occupied area presently provides a yearly rental of £132,500 with a lease expiring in October 2017.

The property will be acquired by Oriental Light (Guernsey) Ltd, a wholly-owned subsidiary of E&O, from Glasgow City Council. The vendor had acquired the property in March 2006 for £21.7 million. The acquisition is expected to be completed by June.

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