Aseana Prop. Regulatory News (ASPL)

29 Aug 2007 14:26

Aseana Properties Limited29 August 2007 Date: 29 August 2007On behalf of: Aseana Properties Limited ("Aseana" or "the Company") Aseana Properties Limited • To purchase sea-front development land in Kota Kinabalu, Sabah, Malaysia for US$11.67 million Aseana Properties Limited (LSE: ASPL), an Asian property developer investing inMalaysia and Vietnam, today announces it has entered into agreements to purchasethree contiguous plots of sea-front development land of approximately 79.55acres in Kota Kinabalu, Sabah, Malaysia for a total cash consideration ofUS$11.67 million (RM 40.85 million) . These three plots of land were acquired from Mangrove Paradise Resort (Sabah)Sdn. Bhd., a Malaysian company based in Sabah, with business interests ingolf-course operations and property development in Sabah. ASPL has entered intoan agreement to jointly develop one of the development plots of approximately44.50 acres with Mr. Tseng Chin-I, a director and major shareholder of MangroveParadise Resort. A joint venture company will be formed between ASPL and Mr.Tseng to develop luxurious resort villas, where shareholdings between theparties will be on a 50:50 basis. The two remaining plots of land of 17.47 acres and 17.58 acres will berespectively developed into an international boutique resort hotel and anintegrated exclusive resort homes. The development land is situated in Tuaran, Kota Kinabalu. Kota Kinabalu is thecapital city for the state of Sabah in Malaysia. The location is approximately30 kilometres from the city centre of Kota Kinabalu and fronts the South ChinaSea. Kota Kinabalu has long been a popular tourist destination amongstMalaysians and tourists. It has direct flight links with major cities in Asiasuch as Singapore, Hong Kong and Taipei. In 2006, approximately 2.1 milliontourists visited Sabah, on the back of record tourist arrivals to Malaysia ofapproximately 17.55 million. Enquiries: Aseana Properties Limited Contactable via Redleaf Redleaf Communications Tel: 020 7822 0200Emma Kane / Samantha Robbins Email: sr@redleafpr.com Fairfax I.S. PLC Tel: 020 7598 5368James King 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 will typically invest in development projects at the pre-construction stage, with a primary focus on location within the major cities of Malaysia and Vietnam. • Investment will be 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. • It is the intention that the Net Proceeds of the Placing will be fully invested in accordance with the investment policy within 12 months of Admission. • 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 The company news service from the London Stock Exchange