E&O to sell land to Hap Seng for RM103m

EASTERN & Oriental Bhd (E&O) has entered into a sale and purchase agreement to sell a 4,651.203 sq m land together with preliminary works carried out thereon to Hap Seng Consolidated Bhd for RM103 million.

The sale is expected to be completed by first quarter of 2010. The plan is for Hap Seng to develop a 35-storey office building with a five-storey basement carpark on the land.

As at November 30 2009, E&O’s total bank borrowings stood at RM1.03 billion. Assuming the entire proceeds from the sale were to pare down borrowings, E&O can save RM5.8 million in financing cost based on an average 5.7 per cent interest rate per year.

By Business Times