KUALA LUMPUR (Aug 9): TA Global Bhd stands to gain A$102 million (approximately RM346.46 million) from selling off the remaining undeveloped land in its Little Bay Cove project, a 33.6 acre freehold residential development in New South Wales, Australia.

Its wholly-owned unit TA Little Bay Pty Ltd (TALBP) inked a put and call option deed today with Karimbla Properties (No 50) Pty Ltd to sell the property for A$245 million, or approximately RM832.2 million, the company announced in a Bursa Malaysia filing today.

The proposed sale involves eight development lots and 26 house lots with a total land area of 24.26 acres. Its original cost of investment for the land from October 2010 up to August 2014 was A$112.95 million.

Under the option deed, TALBP will grant Karimbla a call option to buy the property, and the purchaser will grant TALBP a put option to require Karimbla to buy the said property, based on the terms and conditions set out in the deed.

TALBP has four months from the date of the option deed to obtain the required approval from its shareholders for the proposed disposal, which is part of the condition precedent of the deal, after which Karimbla will be entitled to exercise the call option.

To secure the call option, Karimbla will pay TALBP a call option fee of A$24.5 million. The sum will be returned to Karimbla if TALBP breaches the agreement, but will be kept by TALBP if the breach is by Karimbla.

In return, Karimbla will grant TALBP the put option for A$1. The put option is an irrevocable offer by Karimbla to buy the property under the conditions agreed on, said TA Global.

In March, the company's chief executive officer Tiah Joo Kim told The Edge Malaysia that the company wanted to sell the development to de-gear. The group's financial gearing as at Dec 31, 2016 was 0.85.

From the expected sale proceeds, the bulk or A$120 million will be used to repay bank borrowings, while A$100 million will be used to fund the purchase of properties or assets for business expansion. Of the remainder, A$20 million to be used for working capital while the rest will be used to defray expenses related to the planned disposal.

TA Global’s share price closed unchanged today at 34 sen with a market capitalisation of RM1.8 billion.