Global Oriental to acquire three retail lot units in Pavilion Bukit Ceylon for RM30 mil

KUALA LUMPUR (Sept 15): Global Oriental Bhd is acquiring three shop units in Bukit Ceylon, Kuala Lumpur for RM30 million, as part of its development of a 39-storey premium service residence project.

The shops units, priced at RM12.5 million, RM11.4 million and RM6.1 million respectively, are being purchased from Jelita Orientasi Sdn Bhd, Global Oriental said in a bourse filing.

They are located within Pavilion Ceylon Hill, a mixed commercial-cum-residential development on freehold land. The project was 80% completed as at Aug 31.

Global Oriental said it was unable to determine the net book value of the properties, given they are currently still under construction.

The acquistion, which will be funded via internally-generated funds and bank borrowings in the proportion of 20% and 80% respectively, is expected to be completed by the middle of mid-2023.

“Accordingly, the proposed acquisition may allow Global Oriental to benefit from potential capital appreciation, and it may also be able to generate recurring rental income in the event the company decides to rent out the properties,” it added.

Global Oriental’s share price finished 3.03% or one sen higher at 34 sen, bringing it a market capitalization of RM154.6 million.