KUALA LUMPUR (Dec 19): Financial services and IT company Pacific & Orient Bhd (KL:P&O) said its US-based subsidiary has secured a US$67 million (RM273.16 million) construction loan to finance the group’s property development project in Miami, Florida.

The project is a 21-storey waterfront condominium development in Miami’s North Bay Village that will feature 54 one-of-a-kind residences, according to its latest annual report. 

The loan exceeds P&O’s market capitalisation of RM170.29 million, based on its last closing price of 57.5 sen.

According to bourse filings, the property is owned by Pacific & Orient Properties LLC (POPLLC), a Delaware-incorporated subsidiary of Pacific & Orient.

As part of the loan conditions, two single-purpose holding entities — POP Owner LLC and POP Pledgor LLC — were created above POPLLC for security purposes. POPLLC also granted a mortgage lien over the property and pledged 100% of its membership interest to the financier.

Pacific & Orient said the loan will not affect its issued and paid-up capital or the shareholdings of substantial shareholders.

The group has been loss-making for three consecutive years. For the financial year ended Sept 30, 2025 (FY2025), P&O’s net loss narrowed to RM30.56 million from RM78.1 million a year earlier, while revenue was largely unchanged at RM295.93 million versus RM298.42 million in FY2024.

As of end-September, P&O held cash balances of RM33.63 million and deposits placed with banks of RM371.94 million, against borrowings of RM34.78 million.

Year to date, its shares have fallen 9.4%.