MyEG enters into RM155m property deal

My EG Services Bhd (MyEG) is acquiring 22 storeys of stratified parcels in the 45-storey Iconic Office (Block N) at Empire City @ Damansara, for RM155.35mil.

The company told Bursa Malaysia yesterday it had entered into 22 conditional sale and purchase agreements with Cosmopolitan Avenue Sdn Bhd as part of its plan to centralise its operations and relocate all employees.

“At present, MyEG operates in various locations within Klang Valley with its corporate and business office located at 1 First Avenue, in Bandar Utama, and is currently rented. Over the past few years, MYEG has experienced growth in its business, operations and staff strength.

“In line with this and future expansion plans, MyEG requires additional premises to house its daily operations.

“The proposed acquisition facilitates the company’s plans to centralise its operations and relocate all employees under one roof to improve efficiency and operational productivity,” it said.

The building, which will have a total net lettable area of 238,932 sq ft, is expected to be completed by December 2015.

Out of the total cost of RM155.35mil, MyEG said RM46.60mil would be financed by internally generated funds, while the remaining RM108.74mil would be funded by external borrowings.

MyEG said the market outlook for property, specifically the office market, was expected to remain resilient with stable occupancy and rental rates.

“The on-going upgrades for public transportation including the light rail transit (LRT) extensions and mass rapid transit (MRT) construction is expected to improve accessibility and connectivity between the Kuala Lumpur city centre and locations such as Bandar Utama, Mutiara Damansara, the Damansara Perdana corridor, Petaling Jaya, Subang Jaya and Puchong.”

On the rational for the building’s location, MyEG said Empire City @ Damansara was currently being developed in phases and would feature interconnected retail, commercial and office spaces.

“This includes a retail area of about 2.5 million sq ft with an Olympic-size ice skating rink, a lifestyle cinema and three upper-scale international hotels; one million square feet of office space and circa 3,000 units of studios, small office home office (SoHo) and serviced suites, which will provide a readily available market catchment comprising the office crowd (business travellers) and retailers (leisure travellers).”

The company added that the proposed acquisition was not expected to have any material effect on the earnings and earnings per share of MyEG for its financial year ending June 30, 2015. - By The Star