PRIME LOCATION: Group to convert commercial space into residential apartments worth RM250m soon
EASTERN & Oriental Bhd (E&O), having bought a freehold plot in central London last year, is set to redevelop the commercial space into residential units worth RM250 million.
E&O bought Princes House, a prime freehold office-cum-retail building in central London for STG20.25 million (RM104.9 million) in April 2012.
"We've obtained approval to convert this commercial space into E&O brand of residential apartments. We'll launch this in two months," said E&O deputy managing director Eric Chan Kok Leong.
"There's a ready rental and sale market, given its proximity to the University of London, London School of Economics as well as the Inns of Court, where student accommodation and legal offices are in demand," he said after a shareholders' meeting, here, yesterday.
On the company's Penang project, Chan said the Seri Tanjung Pinang property development is almost complete with the launch of the final block of the Andaman condominiums, Marina serviced apartments and super terrace houses.
In the Klang Valley, the company is upbeat on its newly-launched The Mews serviced apartments, which has sold out 70 per cent of the units.
As it is a joint venture with Japan-based Mitsui Fudosan Residential Co Ltd, The Mews is expected to attract more buyers from Japan, Chan noted.
When asked on E&O's latest joint development with Sime Darby at Sungai Buloh called Elmina West, he said the 54.6ha plot offers an opportunity to deliver a unique wellness product that meets the lifestyle needs of an increasingly discerning market.
Elmina West is part of Sime Darby's group of townships along the Guthrie Corridor Expressway (GCE) in Selangor.
Connectivity to the area will be further enhanced when the proposed Damansara-Shah Alam Elevated Expressway (DASH) is completed in 2016, providing a direct connection to Mont Kiara through the Penchala Link, cutting travel time to a mere 15 minutes.
When asked on the overall outlook for E&O, Chan highlighted that the group aims to generate RM1.5 billion in sales over the next three years.
"From 2014 to 2016, we're going to focus on our four growth engines located in Penang, Iskandar Malaysia, the Klang Valley and London. We expect sales to reach RM3 billion beyond 2017, given E&O's current strong financial position," he said.