| Contents | 1. INTRODUCTION
The Board of Directors of AMPROP wishes to announce that its wholly-owned subsidiary, Riverich Limited ( RIVERICH ), a company incorporated in the British Virgin Islands, had today received confirmation from its solicitors in London that RIVERICH had on 20 December 2010 entered into a Contract For Sale of Freehold Land ( Contract ) with Abaca Services Limited (Company No: 1374735) ( ABACA ) to purchase a freehold property at 101, Lexham Gardens, London W8 6JN, United Kingdom ( the Property ) for a cash consideration of GBP7,300,000 ( Proposed Acquisition ).
2. DETAILS OF THE PROPOSED ACQUISITION
2.1 Information on the Property
The Property is a freehold residential property comprising 10 self contained apartments over the lower ground, ground and four upper floors.
Located within the London Borough of Kensington and Chelsea, the Property is located in a predominantly residential area and benefits from excellent public transport amenities with the High Street Kensington and Gloucestor Road underground stations nearby.
The Property provides a net lettable space of 8,308 square feet of residential space. Based on current rentals from existing tenants, the rental yield on the Property is approximately 4%.
2.2 Information on ABACA
ABACA was incorporated in the British Virgin Islands on 2 January 2007 and is a wholly-owned subsidiary of ED Group Holding Limited.
ABACA is currently the owner of the Property.
3. RATIONALE
The continued strength of the Ringgit Malaysia against the Pound Sterling presents an opportunity for AMPROP to further enhance its presence in London property market.
The Proposed Acquisition involves an en-bloc purchase at a favourable price with immediate rental returns from existing tenants. Based on rental rates of comparable properties in the vicinity, there is potential for healthy rental rate increases in the future when the existing tenancies expire.
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 purchase consideration would be satisfied by cash and to be paid in the following manner:
(a) a deposit of GBP730,000 ( Deposit ), representing 10% of the purchase consideration will be paid to ABACAs solicitor as stakeholder upon execution of the Contract.
(b) on completion, the Deposit and balance of the purchase consideration of GBP6,570,000 will be paid to ABACA.
5. SOURCE OF FUNDING
The Proposed Acquisition will be initially funded by advances from holding company, AMPROP with plans for RIVERICH to partially refinance the Proposed Acquisition with a GBP denominated bank loan thereafter.
6. LIABILITIES TO BE ASSUMED
There is no liability to be assumed by RIVERICH 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 6.9% 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 during the financial year ending 31 March 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
A copy of the Contract will be made available for inspection at the registered office of AMPROP 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 21 December 2010. |