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BLand ventures into Iceland real estate in RM57.5m deal

18 Feb 2019 / 21:09 H.

PETALING JAYA: Berjaya Land Bhd (BLand) is planning to venture into Iceland’s property market through the acquisition of Iceland real estate firm Geirsgata 11 EHF (GE11) in a US$13.99 million (RM57.54 million) deal.

In a filing with Bursa Malaysia, BLand said the proposed acquisition will provide an opportunity for the group to venture into property development and investment in Iceland and in particular, branded hotels and residences.

To facilitate the proposed acquisition, BLand has incorporated a 100%-owned subsidiary namely Berjaya Reykjavik Investment Ltd (BRIL) in Iceland for a cash subscription of €1.00 (about RM4.69).

Following the incorporation, BRIL has entered into an agreement with Fiskitangi EHF and Utgerdarfelag Reykjavikur HF (URHF) to undertake the proposed acquisition of GE11 for US$1.4 million (RM5.75 million) cash.

As part of the deal, BRIL will also repay the outstanding loan of US$12.59 million (about RM51.79 million) obtained by GE11 from URHF to purchase a piece of leasehold land in Iceland.

GE11 was incorporated in Reykjavik, Iceland in 1998 and its principal activities are provision of real estate, lending activities and related operations. It owns leasehold real estate at Geirsgata 11, of 101 Reykjavik, currently being leased from Faxaflóahafnir sf.

BLand expects to fund the cash payments for the proposals from internally generated funds and/or borrowings of the group. The proposals are expected to be completed in the first half of 2019.

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