Reported in New Straits Times Online:

EASTERN & Oriental Bhd (E&O) is strengthening its international growth engine via the addition of another prime freehold property to its existing cache in Central London.

E&O said in a statement yesterday via its proposed purchase of a 100 per cent equity interest in Loxley Holdings Management Ltd, it will come to own the ESCA House in Bayswater London, which Loxley had earlier contracted to buy for £27.65 million (RM147.37 million).

“The acquisition of ESCA House follows E&O’s objective of expanding our overseas growth engine in prime areas of London. The location of this early 20th century building cannot be over-emphasised and the property has excellent potential for redevelopment, while respecting ESCA’s existing façade and redbrick structure,” said managing director Datuk Terry Tham in the statement.

ESCA House, built in 1919, is situated in London’s Zone One area of Bayswater along Palace Court, a road named for its walking-distance proximity to the royal enclave of Kensington Palace Gardens.

Bordering the northern perimeter of Hyde Park, ESCA House is tucked along a quiet street within Bayswater, characterised by garden squares lined with Victorian stucco terraces, where properties range from exclusive apartments to imposing mansions.

“Within the City of Westminster and the Royal Borough of Kensington and Chelsea, arguably the most affluent district in central London, Bayswater is also recognised as one of the most cosmopolitan and culturally-diverse areas. Its appeal is underscored by luminaries and celebrities from politicians to actors, who have homes in the neighbourhood.

“Malaysians will be heartened to note that Queensway, a perennial favourite dining destination with an eclectic array of ethnic-cuisine restaurants, is less than 500m away from ESCA House,” the company said.

The company said ESCA House is a low-built building of 27,000 sq ft gross internal area, comprising office and residential units.

“Subject to planning permission, our intention is to redevelop the building into a six-level residential development comprising approximately 28 private residential units with a net internal area of about 36,000 sq ft and underground car parks,” Tham said.

“We expect to submit our application to the planning authorities as soon as the acquisition is completed,” he added.

The acquisition of ESCA House follows E&O’s maiden entry into London, with its Princes House refurbishment and conversion project in 2012.

E&O is converting and refurbishing the neo-classical building from the 1920s into a total of 54 units, comprising 20 residential units and 34 serviced apartments, which it expects to complete by 2016.

To date, all residential units at Princes House have been sold, while the 34 serviced apartments are slated for en bloc sale.