Update IGB unit buys UK prime land owner

by **Cals** Fri 09 May 2014, 20:15

Update IGB unit buys UK prime land owner

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Friday, 09 May 2014 10:08

KUALA LUMPUR (May 9): IGB Corp Bhd's 50%-owned unit Black Pearl Ltd has acquired the entire stake in a UK prime-land owner for GBP1 (RM5.51). Under the deal, Black Pearl will also assume the sellers' GBP65 million payment obligation to the National Asset Management Agency.

According to IGB's statement to Bursa Malaysia today, Black Pearl has acquired 100% of Blackfriars Ltd from Panthermane Ltd and Ostingale Ltd.

IGB said it would advance up to GBP57.1 million to Black Pearl as part payment for the Blackfriars acquisition. Blackfriars owns 0.73ha of prime real estate in London.

"The property is located in a strategic and central location in the south-west of London, with good public transport links, with Southwark London underground station (Jubilee Line) approximately 400 metres to the south and Blackfriars station, which provides both main line and London Underground (District and Circle Lines) services approximately the same distance to the north.

"In addition, numerous London bus routes operate along Blackfriars Road," IGB said.

Tower Ray Ltd owns the remaining 50% in Black Pearl, which will also assume Panthermane's GBP49.3 million worth loans to Blackfriars.

"It is the joint venture’s (Black Pearl) intention to submit and obtain amendments to the current planning permission for the property and as such, no estimated gross development value and total development revenue for the property may be ascertained at this juncture.
"It is intended that Black Pearl will fund the development cost of the property by bank borrowings from financial institutions in the UnitedKingdom," IGB said.

Trading of IGB shares was suspended between 9am and 10am today in conjunction with the announcement.