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7 Jul 2008 08:05
RNS Number : 4297Y
Aseana Properties Limited
07 July 2008
Date: 7 July 2008
On behalf of: Aseana Properties Limited (“Aseana” or “the Company”)
Embargoed for: 0700hrs
Aseana Properties Limited
§ Strengthens presence in Vietnam by acquiring a strategic minority stake in property developer
§ Secures a pipeline of property projects
Aseana Properties Limited (LSE: ASPL), a leading Asian property developer on the Official List of the London Stock Exchange, today announces that it has acquired a strategic minority stake in Nam Long Investment Corporation (“Nam Long”) for approximately US$18.03 million. In addition, Aseana has established an exclusive agreement with Nam Long to co-develop four further projects in Ho Chi Minh City.
Nam Long, a private property development company established in 1992, is a leading player in the real estate market in Ho Chi Minh City, Vietnam. Over the years, Nam Long has completed projects in Ho Chi Minh City such as Tan Thuan Dong mixed residential and commercial development in District 7 and Phuoc Long B residential development in District 9. Nam Long currently has over 500 hectares of land bank mainly in Ho Chi Minh City and neighbouring provinces.
Through this partnership, the Company is expected to co-develop at least four property development projects with Nam Long in Ho Chi Minh City in the immediate term. Aseana has also secured the option to develop future high-end projects with Nam Long. Aseana’s investment is part of a private placement exercise of new ordinary shares in Nam Long to institutional investors.
Mr. Nguyen Xuan Quang, Chairman & General Director of Nam Long, said:
“Aseana has an established and sound track record in developing high-end property products in Malaysia, and has selected Vietnam as their priority investment destination. We are therefore delighted to welcome Aseana as our shareholder.
“Vietnam is going through a period of sustained growth that will require more quality homes, offices and retail centres to cater for increasingly discerning consumers. We have a strong pipeline of real estate projects in Vietnam to cater for this demand and we look forward to collaborating with Aseana both as an active shareholder as well as a partner in our projects.”
Commenting on the partnership with Nam Long, Dato’ Mohammed Azlan bin Hashim, Chairman of Aseana Properties Limited, said:
”We are delighted to be associated with an established property developer like Nam Long in Vietnam. This investment strengthens and anchors our presence in Vietnam and it signifies our commitment to this exciting market. Just like any growth economy, property developers play a significant role in ensuring the growth trajectory is supported by sound real estate supply. With its established track record and local expertise, we believe Nam Long is well positioned to capitalise on these opportunities, and we look forward to partnering Nam Long in delivering these projects.”
Enquiries:
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Aseana Properties Limited
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Contactable via Redleaf
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Redleaf Communications
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Tel: 020 7822 0200
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Adam Leviton / Samantha Robbins
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Email: al@redleafpr.com
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Fairfax I.S. PLC
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Tel: 020 7598 5368
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James King
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Notes to Editors
§ Ireka Development Management, the Manager, is a wholly-owned subsidiary of Ireka Corporation Berhad, a company listed on the Bursa Malaysia since 1993, which has 40 years of experience in construction and property development.
§ The Company typically invests in development projects at the pre-construction stage, with a primary focus on locations within the major cities of Malaysia and Vietnam.
§ Investment is made in projects where it is believed there will be a minimum 30% annualised return on equity (“ROE”) on investments in Vietnam and a minimum 20% ROE on investments in Malaysia.
§ No one underlying single asset will account for more than 30% of the gross assets of the Company at the time of investment.
§ The Directors believe the following factors should provide sustainable growth in the real estate sectors of both Malaysia and Vietnam:
o An increasing standard of living and urbanisation driven by a burgeoning young and middle class population
o Clear Government role in encouraging participation of private sectors in real estate development, as well as encouraging and promoting land and property ownership
o Improving availability of mortgages to encourage property ownership
o Favoured Foreign Direct Investment (FDI) destinations driving demand for commercial and industrial properties
This information is provided by RNS
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