PJ Development buys Aussie land for A$145m

KUALA LUMPUR: PJ Development Holdings Bhd’s (PJD) 75%-owned unit Yarra Park City Pte Ltd has exercised its call option to acquire 2.026ha of freehold land in Melbourne, Australia for A$145 million (RM434 million) from Dynasty Falls Pty Ltd.

On June 19, Yarra entered into a put-and-call option deed with Dynasty to purchase the property.

In a filing with Bursa Malaysia yesterday, PJD said Yarra had received approval from the Foreign Investment Review Board on July 15 and as such decided to exercise its option yesterday.

However, the contract is still subject to PJD obtaining approval from its shareholders at an extraordinary general meeting to be convened.

The proposed acquisition is expected to be funded via internal funds and/or bank borrowings.

PJD said the proposed acquisition would provide the management with an opportunity to purchase a suitable development land with strong growth potential.

“The management of PJD deems the land to be an ideal property for long-term development with strong growth potential given that it is one of the last pieces of sizeable prime land available for development in the Melbourne central business district area.

The proposed acquisition is expected to be completed by the fourth quarter of this year.


This article first appeared in The Edge Financial Daily, on July 24, 2014.


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