KUALA LUMPUR: Lifestyle property developer Eastern & Oriental Bhd (E&O) intends to take over and redevelop ESCA House in Baysways, London, that was built in 1919.
In an announcement to Bursa Malaysia yesterday, E&O said it is proposing to buy the entire stake in the United Kingdom-based Loxley Holdings Management Ltd, which had earlier contracted to acquire the landmark building for £27.65 million (RM147.50 million).
E&O is expected to pay an estimated £4 million in cash to buy out Loxley from TLH Investments Ltd and Lead Pacific Inc Ltd.
The announcement noted that 90% of the payment for the purchase of ESCA House would be funded through E&O’s internal funds as well as bank borrowings. About 70% of the purchase consideration will be settled in bank loans.
“The acquisition of ESCA House follows E&O’s objective of expanding our overseas growth engine in prime areas of London. The location of this early 20th-century building cannot be overemphasised. The property has excellent potential for redevelopment, while respecting ESCA’s existing façade and redbrick structure,” said E&O managing director Datuk Terry Tham Ka Hon in a statement.
ESCA House is situated in London’s Zone One area of Bayswater along Palace Court, a road so named for its proximity to the royal enclave of Kensington Palace Gardens.
Bordering the northern perimeter of Hyde Park, ESCA House is tucked along a quiet street within Bayswater characterised by charming streets and garden squares lined with Victorian stucco terraces. It’s now a building comprising office and residential units.
“We intend to redevelop it into a six-level residential development comprising 28 private units and underground car parks,” Tham said.
This article first appeared in The Edge Financial Daily, on November 7, 2014.
TOP PICKS BY EDGEPROP
Bangunan Duta Impian (The Embassy Suites)
Johor Bahru, Johor
Jalan Ceria 15
Iskandar Puteri (Nusajaya), Johor
Pangsapuri Angsana, Bandar Mahkota Cheras
Cheras, Selangor