IGB sells 50% of London real estate capital for RM600mil

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KUALA LUMPUR: IGB Bhd sold all of its 50% stake and shareholder debt in freehold title in London to a unit of global real estate group Hines for £ 104.375million (RM600million) .

In a filing with Bursa Malaysia, IGB said its unit Verokey Sdn Bhd and Tower Ray Ltd each sold their 50% stakes in the Black Pearl Ltd joint venture, which owns the land known as 18 Blackfriars Road, SE1, London, and transferred their shareholder debt. to HNG Blackfriars 1 Ltd for £ 208.75 million.

He added that the transaction was completed through a combination of £ 120million paid to sellers and the issuance of loan notes with a principal value of £ 88.75million, which will be repaid 24 months after the completion of the transaction.

Indeed, Verokey’s share of the consideration for the sale amounted to £ 104.375 million (before certain deductions), of which £ 60 million in cash at closing and £ 44.375 million 24 months after closing of the transaction. .

“The completion payment is a portion of the debt Black Pearl owed Verokey.

“The second payment represents the balance of the debt that BPL owed to Verokey and the value of Verokey’s 50% interest in Black Pearl, but which has now been incurred by the buyer and is evidenced by a loan note issued by the buyer who is collateralized on the property, ”said IGB.

The group said it sees the transaction as beneficial as it represents an opportunity to make its investment in Black Pearl.

According to IGB, the proceeds will be used for the group’s general working capital.

He added that the transaction will result in an increase of around 21 sen in its net assets per share and earnings per share.

Trading in IGB shares was halted within the first hour of Thursday’s session. It resumed trading at 10 a.m., opening one sen or 0.5% more at RM 1.99.

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