RNS Number : 8805K
Top Creation Investments Limited
22 July 2011
Top Creation Investments Limited
("TCIL" or the "Company")
Acquisition of Malaysian property
Issue of equity
The Company is pleased to announce that it has agreed to invest RM14m (approximately GBP2.8m), in the purchase of a 2.1429 acre site in Negeri Melaka, Malaysia (the "Land") for a mixed use development which will comprise a shopping mall, car parking, facilities centre and home office service suite (the "Project").
The Company has agreed to acquire the Land from Empire Property Sdn. Bhd. ("EPSB"), a company in relation to which TCIL's investment manager is a director and in which he has a significant shareholding. The consideration for the acquisition is RM5.0m (approximately GBP1.0m) for the Land, and a further RM9m in respect of development work undertaken to date (approximately GBP1.8m). Of this total, a deposit of RM1.4m, comprising a deposit of RM0.5m and 10% of the RM9m development costs, is payable immediately, with the balance being paid on completion, which is expected to be in September 2011.
In addition, the Company has raised GBP1,033,500 through subscriptions of 49,214,286 new ordinary shares at 2.1p per share (the "Subscription").
Overview of the Property and Project
The Land is located within the Melaka Tourism Development Belt ("MTDB") stretching from Dataran Phalawan to Melaka Esplanade and to Klebang where the Malacca Gold Coast is located. This location is part of the growth area for tourism activities for which the Melaka state is focusing its attention. The MTDB already contains a couple of existing tourist related facilities, however it is very much in its infancy and there is still a lot of growth potential. The success of the MTDB is expected to derive from the unique proposition of Melaka as a renowned tourist attraction, which helps attract constant flows of consumers for its shopping, medical tourism and tourism-related facilities, which elevates its residential and commercial potential.
Sub-structure works were completed by EPSB on the Land in 2008, and the Company proposes to continue with EPSB's Project, which will comprise:
(i) 3 floors of shopping mall;
(ii) 3 [1/2] floors of parking lots (with 613 parking bays);
(iii) 1 floor of facilities centre; and
(iv) 510 home office serviced suites, spread over 17 floors.
The Director's believe that the Project's concept is new to the area. Currently, along the Klebang coastal area, there are no such developments where service suites come with other facilities, e.g. retail/shopping malls and food and beverage outlets, therefore the Company's directors believe that there is a need for this type of development as local residents and tourists currently have to travel down town for shopping and other needs.
The Company expects that:
(i) the professional team will be engaged by the end of July 2011;
(ii) the acquisition of the Land is expected to be completed by the end of September 2011;
(iii) such building/planning approvals as are necessary to commence construction will be obtained by November 2011;
(iv) construction of the buildings will commence in November 2011 at the latest; and
(v) practical completion of the Project will be achieved by November 2013.
The total project costs are expected to be approximately RM185m, including the RM14m investment by the Company being announced today. The Company expects to fund the additional costs through advanced sales of units, which are anticipated to commence during Q3 2011. Marketing of the units will mainly focus on China, as the Chinese represent the largest group of investors looking for investment opportunities in Melaka.
Issue of Equity
Although the Company does not anticipate the Project requiring debt financing, the Company needs to raise funds for working capital to pay for consultancy fees, local authority fees and contributions to various local authorities for utilities, totalling GBP1,033,500. To that end, the Company has received subscriptions for 49,214,286 ordinary shares of GBP0.001 each in the Company at a price of GBP0.021 per share (the "Subscription Shares").
Application will be made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM and it is expected that admission will occur on 28 July 2011.
Following admission of the Subscription Shares ("Admission"), the Company's issued share capital will comprise 549,964,286 ordinary shares of GBP0.001 each. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Top Creation Investments Limited, under the FSA's Disclosure Rules and Transparency Rules.
Furthermore, immediately following Admission, Jade Global Investments Limited, a shareholder of the Company, will hold 95,637,500 ordinary shares of GBP0.001 each, representing 17.39% of the Company's issued share capital.
Top Creation Investments Limited Wong Yu Sun, Finance Director Tel: 006012 2778972 Daniel Stewart & Company plc Antony Legge/James Felix Tel: 020 7776 6550 Threadneedle Communications Graham Herring/Robyn McConnachie Tel: 020 7653 9850
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