| Contents | 1. INTRODUCTION
The Board of Directors of AMPROP wishes to announce that AMPROP had today received confirmation from its solicitors in London that AMPROP had on 12 October 2010 entered into an Agreement For Sale ( Agreement ) with British Land Offices (Non-City) Limited (Company No: 2740378) ( BRLND ) (the Vendor) to purchase a freehold property known as 95-99 Baker Street, 405 Durweston Mews, London W1, United Kingdom ( the Property ) for a cash consideration of GBP16,250,000 ( Proposed Acquisition ).
Prior to completion date, AMPROP will nominate its subsidiary(ies) to complete the Agreement and take transfer of the Property.
2. DETAILS OF THE PROPOSED ACQUISITION
2.1 Information on the Property
The Property is currently a freehold commercial property strategically located within walking distance to Marylebone High Street, Oxford Street and West End areas as well as public transportations namely, Baker Street underground and Marylebone overground stations.
BRLND will be converting part of the building into residential units with work on the residential scheme scheduled to commence in early 2011 and completion in 12 to 18 months thereof.
Once completed, the Property will comprise of 19 apartments arranged over 6 upper floors with 2 let commercial units across the ground and lower ground floors covering a total area size of approximately 20,000 square feet and 6 car park spaces.
2.2 Information on BRLND
BRLND is a subsidiary of The British Land Company PLC ( British Land ), one of the largest Real Estate Investment Trust (REIT) in the United Kingdom. Headquartered in London, British Land is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
BRLND is currently the owner of the Property.
3. RATIONALE
The continued strengthening of the Ringgit Malaysia against the Pound Sterling presents AMPROP with an opportunity to enhance its presence in the London property market, in addition to its interest in the freehold office buildings known as 40 and 50 Eastbourne Terrace located in Paddington, London which was acquired in September 2009.
With a long term view in mind, AMPROP seeks to make a gain from rental returns and capital appreciation; thereby enhancing shareholders long term value.
4. PURCHASE CONSIDERATION
4.1 The purchase consideration was arrived at on a willing-buyer-willing-seller basis.
4.2 The consideration would be satisfied by cash to be paid in the following manner:
(a) AMPROP (the Purchaser) will pay a sum of GBP1,625,000, representing 10% of the consideration upon execution of the Agreement to BRLNDs solicitor as stakeholder.
(b) AMPROP will pay a further sum of GBP1,625,000 to BRLNDs solicitor as stakeholder upon BRLND satisfying the conditions as stipulated in the Agreement.
(c) On the completion date, the aforesaid deposits and the balance purchase consideration of GBP13,000,000 will be paid to BRLND.
5. SOURCE OF FUNDING
The Proposed Acquisition will be funded by internally generated funds and bank borrowings of the Group.
6. LIABILITIES TO BE ASSUMED
There is no liability to be assumed by AMPROP arising from the Proposed Acquisition.
7. PERCENTAGE RATIOS
The highest percentage ratio applicable to the Proposed Acquisition pursuant to paragraph 10.02(g) of Bursa Malaysia Securities Berhad Main Market Listing Requirements is 15.38% based on the latest audited financial statements of AMPROP for the financial year ended 31 March 2010.
8. EFFECTS OF THE PROPOSED ACQUISITION
The Proposed Acquisition is not expected to have any material effect on the gearing, earnings and net assets per share of AMPROP for the financial year ending 31 March 2011. However, it is expected to contribute positively to the future earnings of AMPROP from the rental income of the Property and any subsequent gain on appreciation upon disposal.
The Proposed Acquisition will not have any effect on the issued and paid-up share capital and substantial shareholders shareholding of AMPROP as the purchase consideration will be satisfied in cash.
9. APPROVALS REQUIRED
The Proposed Acquisition is not subject to the approval of the shareholders of AMPROP.
10. DIRECTORS AND MAJOR SHAREHOLDERS INTERESTS
None of the Directors and/or major shareholders of AMPROP and/or persons connected to them have any interest, direct or indirect, in the Proposed Acquisition.
11. ESTIMATED TIMEFRAME FOR COMPLETION
Barring any unforeseen circumstances, the Proposed Acquisition is expected to be completed within 18 months from the commencement of work on the residential scheme scheduled in early 2011.
12. STATEMENT BY DIRECTORS
Having considered all aspects of the Proposed Acquisition, the Board of Directors of AMPROP is of the opinion that the Proposed Acquisition is in the best interest of AMPROP.
13. DOCUMENTS AVAILABLE FOR INSPECTION
The Agreement will be made available for inspection at the registered office of the Company during normal office hours from Mondays to Fridays (except public holidays) at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur for a period of three (3) months from the date of this announcement.
This announcement is dated 13 October 2010. |