AmProp extends JV with Grosvenor Group in Spain to 9 years

KUALA LUMPUR (July 20): Amcorp Properties Bhd (AmProp) announced today that it has mutually extended validity of its 50:50 0real estate joint venture (JV) in Spain with Grosvenor Group Ltd to nine years, from five previously.

The agreement to effect the JV was inked in July last year by AmProp's unit Amcorp Horizon Sdn Bhd, with Grosvenor Group's indirect wholly-owned unit Grosvenor Europe Investments Ltd, for the setting up of the JV company (JVCo) called Urban Value Add I (Spain) SL. GEIL's wholly-owned manager was also appointed by the JVCo as real estate investment manager to manage and report on activities of the JVCo.

On Wednesday, a variation letter agreement was entered between AHSB with the three parties, to vary the terms of the earlier JV deal.

“The purpose of the Amendments is to allow the JVCo to pursue investment that fall outside of the initial investment criteria as set out in the JVA, which may require longer business plan period,” AmProp said.

The JVCo was formed to invest in a portfolio of real estate development and value-added projects in Madrid and any other cities in Spain.

The new agreement will extend the deadline to July 13, 2025 from July 13, 2021 previously. The JVCo may also be extended for an additional year, “upon the manager’s proposal and subject to the approval of the JV parties”, AmProp added.

The new agreement also spelt out the asset management fee payable to Grosvenor Fund Management to be 0.6% per annum of the total invested capital in the JVCo — the parties committed to put in €70 million last year — during the pre-development stage of the JVCo's investments, and at 1% thereafter.

AmProp shares closed unchanged at 78 sen today, giving it a market capitalisation of RM462.82 million. — theedgemarkets.com

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