AmProp to invest more in Spain joint venture

PETALING JAYA: Amcorp Properties Bhd (AmProp), which has partnered with Grosvenor Europe Investments Ltd (GEIL) and Grosvenor Fund Management Spain, SLU (manager) to invest in real estate in Spain, said the capital commitment from each joint venture party will be increased by an additional RM72.45 million (€15 million).
Previously, AmProp said the group will be committing up to €35 million (RM153.65 million) for a 50% stake in a JV company. GEIL was also to contribute an equal amount and hold the remaining 50% stake.
In a filing with Bursa Malaysia today, AmProp said the manager had drawn a significant portion of the existing capital commitment of €70 million from the JV parties, supported by strong pipelines and resurgence in the economy and Madrid real estate market.

“Premised on the above and taking into consideration that the JV still has a balance acquisition period of up to July 12, 2018, the JV parties have agreed to the additional capital commitment with a view of acquiring additional new projects within the investment criteria set out in the JV agreement,” it added.
Therefore, AmProp said a variation letter agreement was entered between its subsidiary Amcorp Horizon Sdn Bhd (AHSB) with the other JV parties, to vary the terms of the earlier JV deal.
Pursuant to the amendment, AHSB and GEIL each contributed a capital commitment of €50 million to the JV company, bringing the total capital commitment to €100 million.
AmProp said the additional capital commitment will be funded through a combination of internally generated funds, proceeds from the proposed rights issue and/or bank borrowings.
AmProp closed unchanged at 75 sen today with 54,000 shares done.