Walleng Enterprises Sdn Bhd, the unit of Malaysian AMDB Berhad Group, has subscribed for 60% of British Virgin Islands-incorporated Westlink Global Investments Ltd., and now is planning to purchase property in London for investment purposes. According to AMDB, Westlink had entered into a sale and purchase agreement with LS Victoria Properties Ltd, in order to purchase two office buildings in Paddington, London, for 50.5 mln pound sterling. These are 146,000 sq ft of retail and office space, 94% of which is currently rented by various tenants.
On September 23, Walleng had subscribed for 60 shares of 1 sterling pound each in the BVI company, or 60 per cent at par cash. Then, Walleng had committed to provide shareholders advances of up to 13.5 mln pound sterling (RM80 mln) to Westlink. Westlink's owner AMDB Group said the subscription in Westlink was a timely opportunity having the purpose to enhance shareholders' long term value by gaining access and investing to Europe's largest and highly liquid property market in London, at the period when property values had dropped significantly.
The shareholders advances will be made from AMDB's own funds and the bank borrowings of the group. The group expects these corporate transactions to have positive effect to AMDB's future earnings from the rental income of the property. AMDB's gearing from the utilisation of available facilities for the shareholder's advance will increase from 0.18 times to 0.39 times if fully disbursed. Its unit Walleng, whose core activities are property development and investment, has a paid-up of RM2.86 mln.
