LONDON (Alliance News) - Aseana Properties Ltd Monday said it will sell its 40% stake in Excellent Bonanza Sdn Bhd to Malaysian Resources Corporation Bhd in a deal worth MYR20 million in cash.
Excellent Bonanza, in which Malaysian Resources already holds at 60% stake, is developing two Grade A offices towers and a business hotel in the Malaysian capital of Kuala Lumpur.
The company said the disposal is in line with its strategy to realise completed assets and to return capital to shareholders. Construction of the office towers has been completed and leasing is currently underway. The hotel also has been constructed and is currently taking bookings.
Aseana said it will record a gain of around USD2.2 million upon closing of the transaction, which is expected by the end of July 2014.
In a separate note Monday, Aseana Properties said its 67% owned subsidiary HLSL 3 Limited Liability Company has entered into an agreement with AEON Vietnam Co Ltd to develop a retail mall at the International Hi-Tech Healthcare Park in Ho Chi Minh City, Vietnam.
AEON Vietnam is a subsidiary of Japanese retail group AEON Co Ltd based.
The transaction involves the disposal of an 11 acre plot of land at the International Hi-Tech Healthcare Park and the transfer of the development rights to AEON Vietnam.
AEON Vietnam intends to develop a 74,000 square metre retail mall, which on completion in 2016 will be the focal point of commercial activities for the International Hi-Tech Healthcare Park.
The retail mall is a key element that will bring to life the International Hi-Tech Healthcare Park master plan, a mixed-use scheme comprising private hospitals, mixed commercial, hospitality and residential developments on a 37 hectare site.
Aseana Properties said the cash consideration received by HLSL3 from the transaction will be used as working capital and to repay bank borrowings at the International Hi-Tech Healthcare Park.
The transaction was carried out at Aseana's ascribed market value for the land and upon closing will crystallise around 26.7% of its realisable net asset value of USD32.63 million as at March 31, the company said.
Aseana said the transaction is part of its strategy to realise assets and reduce gearing at group level.
Aseana has a 67% stake in the International Hi-Tech Healthcare Park. The remaining stake is held by Aseana's joint venture partner, Hoa Lam Group, which holds a significant minority stake together with a consortium of investors from Singapore, Malaysia and Vietnam.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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Aseana Prop. (ASPL)