EASTERN & Oriental Bhd (EOB) has disposed a plot of land in Jalan Tengah, for an undisclosed amount, to Menara Hap Seng Sdn Bhd which will boost its cash position by RM103 million. The sale is in tandem with the group's ongoing strategy to preserve capital and strengthen its balance sheet. Bulk of the proceeds would be channeled to productive projects and investments to maximise returns for the group and, if necessary, facilitate repayment of borrowings, the company said in a statement today.
The company is confident the new owner would continue to appreciate and uphold the planned concept for the 4,700 square metre land which was earlier slated to be developed into a 35-storey commercial tower. The tower, when combined with the St Mary development, is expected to create an integrated commercial development, resulting in the enhanced value of both properties in the Kuala Lumpur business district.