Eastland Equity proposes asset acquisition, capital reduction, diversification to improve financial position

KUALA LUMPUR (March 21): Eastland Equity Bhd is planning to acquire 92 commercial units at Bandar Tun Razak Business Park in Jengka, Pahang, as well as undertake a capital reduction exercise and business diversification, to improve its financial position.

In a bourse filing, the company said its wholly-owned subsidiary FBO Land (Setapak) Sdn Bhd has inked a conditional sale and purchase agreement with Eastland, Top Land Resources Sdn Bhd, Mentiga Development & Construction Sdn Bhd and Leading Ventures Sdn Bhd for the purchase of the commercial units for RM24.8 million, to be satisfied via the issuance of 381.54 million new shares at 6.5 sen apiece.

It said the move is in line with its investment objectives and growth strategy to provide Eastland with a sustainable and stable income stream, and to grow its net asset value per share by acquiring high quality, earnings accretive properties with strong recurring income.

The acquisition comes with a 5% per annum guaranteed rental return by the developer, which Eastland said will serve as a stable income stream for the group for five years.