P&O acquires strategic land in Miami for US$7.42m

KUALA LUMPUR: Pacific and Orient Bhd (P&O) has entered into an agreement to purchase a tract of land in Miami, Florida for US$7.42 million (RM24.5 million).

In a filing with Bursa Malaysia yesterday, the company said the land, measuring 3.22 acres (1.3ha), will be purchased by its subsidiary P&O Global Technologies Inc from Bianca Investments LLC, which is based in Delaware.

According to P&O, the land is currently vacant with no building erected, and has potential for future residential and commercial development, or for capital growth.

It is also located across the high-end jockey club and cricket club condominiums, as well as close to several public and private schools.

The company said the acquisition is on willing-buyer, willing-seller basis.

“The purchase consideration of US$7.43 million was arrived at between the parties on a willing-buyer, willing-seller basis after taking into account the potential future capital appreciation and development prospects of the property,” said P&O in a statement.

However, no formal valuation had been undertaken by the company for this acquisition.

Pending satisfactory results from inspections, tests and analyses of the land, P&O said the acquisition is expected to be completed within four months from the date of signing the agreement.

The company added that internally generated funds will be used to finance the purchase. — by Sulhi Azman


This article first appeared in The Edge Financial Daily, on March 25, 2014.