Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on June 30, 2016.

 

KUALA LUMPUR: Property developer Eastern & Oriental Bhd (E&O) said Brexit will not negatively impact the total net realisable value of the group’s properties in the UK.

In a bourse filing yesterday, E&O said this was because it had invested in London before the sharp rise of properties, at a time when the ringgit to the sterling pound exchange rate was lower.

It defined the total net realisable value as the total value of properties less total bank borrowings.

“Our properties are located in prime locations that remain very much in demand with positive sales prospects. Our bank borrowings are conservative with a low loan-to-value ratio.”

“We had invested in London early on before property prices rose sharply there, and the ringgit to sterling pound average exchange rate was lower than today,” it added.

Meanwhile, prior to the Brexit vote, the property developer had, in April, cancelled the proposed admission of the securities of its indirect wholly-owned Easter & Oriental (UK) Ltd onto the London Stock Exchange, citing unstable global market conditions and exchange rate volatility as the reasons.

E&O shares closed unchanged at RM1.64 yesterday, valuing the group at RM2.06 billion.

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