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.