KUALA LUMPUR (Jan 15): PJ Development Holdings Bhd has subscribed for an additional 26.25 million shares worth RM76.74 million (A$26.25 million) in Australian property developer Yarra Park City Pty Ltd today as the latter raises fund for working capital and to part finance its purchase of a 2.026ha freehold land in Victoria, Australia.

In a filing with Bursa Malaysia today, PJ Development said its wholly owned subsidiary, PJ (A) Pty Ltd holds a 75% equity interest in Yarra, while Equity & Property Investment Corporation Pty Ltd (EPIC), in which Tan Sri Ong Leong Huat has a 41.49% equity interest, holds the remainder 25%, prior to the allotment of shares. Pursuant to the share allotment, their shareholdings remain unchanged.
 
Yarra was incorporated in New South Wales. It is a 75%-owned subsidiary of PJA, a wholly-owned subsidiary of Pengerang Jaya Pte Ltd, which in turn is a wholly owned unit of PJ Development. 

PJ Development had previously told Bursa in a separate listing in September last year that Yarra was looking to exercise its call option in its put and call option deed in relation to the proposed acquisition with Dynasty Falls Pty Ltd. The proposed acquisition was for AU$145 million or RM432.1 million.

Meanwhile, upon completion of the shares allotment, the issued and paid-up share capital of Yarra will increase from AU$15 million to AU$50 million, comprising 50,000,000 ordinary shares of AU$1.00 each.
 
“The subscription price for the subscription of shares was determined based on the issue price of Yarra’s shares of AUD1.00 each,” said PJ Development, adding that the subscription of shares is financed via internally generated funds.

The fund from the subscription of shares is for working capital of Yarra and to part finance the acquisition of a freehold land measuring approximately 2.026 hectares, located on 93-119 Kavanagh Street, Southbank, Victoria 3006, Australia.