Eastern and Oriental Berhad has 4,700 sqm of land on Jalan Tengah, which is just next to the group’s newly launched St Mary Residences to Menara Hap Seng Sdn Bhd for RM103 million on an ‘as-is-where-is’ basis.

In an issued press release, E&O said, “The land is slated for a 35-level commercial tower which when combined with the St Mary development will create an integrated commercial development, resulting in the enhanced overall value of both properties in the Kuala Lumpur central business district.

“Significantly, the disposal will further boost EOB’s cash position by RM103 million and is a positive step by the company to realise cash resources in tandem with the Group’s ongoing strategy of preserving capital value and strengthening its balance sheet. The bulk of the proceeds will be channeled to productive projects and investments to maximise returns for the Group and, if necessary, facilitate repayment of borrowings.”

E&O group recorded a 120% increase in second quarter profits from the first quarter in the first half of its financial year ending 31 March 2010.