Aseana Prop. Regulatory News (ASPL)

5 Apr 2007 07:01

Aseana Properties Limited05 April 2007 Date: 5 April 2007 On behalf of: Aseana Properties Limited ("Aseana" or the "Company") Aseana Properties Limited • First day of dealings on the Main Market of the London Stock Exchange • Placing raised US$162million Aseana Properties Limited, an Asian property developer investing in Malaysia andVietnam, today announces that its shares have been admitted to the Official Listand will begin trading on the Main Market of the London Stock Exchange at 8amtoday. The shares will be traded under the symbol LSE: ASPL. The Company has been established to take advantage of property developmentopportunities in Malaysia and Vietnam. Ireka Development Management ("Ireka")has been appointed as manager with responsibility for the day-to-day managementof the Property Portfolio and the introduction and facilitation of newinvestment opportunities. Aseana's investment objective is to provide Shareholders with an attractiveoverall total return achieved primarily through capital appreciation byinvesting in property in Vietnam and Malaysia. The Company intends to achieveits investment objective through the acquisition, development and redevelopmentof upscale residential, commercial and hospitality projects leveraging on theManager's experience in these sectors. Fairfax I.S. PLC acted as the lead financial adviser and broker for the Placing. Commenting on Company's admission to trading on the London Stock Exchange, Dato'Mohammed Azlan bin Hashim, Chairman of Aseana Properties Limited, said: "An exciting opportunity exists in the Malaysian and Vietnamese real estatemarkets, driven by factors such as the growing young, middle class populationand increasing interest from overseas companies and investors. The Manager,Ireka, has a long and proven track record of award-winning, prestigiousdevelopments in Malaysia and we strongly believe this can be replicated inVietnam, where the market is in its infancy. "The response to the fundraising has been very positive and we are delighted tobe joining the Main Market of the London Stock Exchange today." Key points • 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 Initial Portfolio will consist of five properties located in Malaysia offering a mix of residential and commercial projects in various stages of development. In advanced negotiations regarding further opportunities in both Malaysia and Vietnam. • 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 Details of the Placing Placing Price per Share US$1.00Number of Shares being issued 162,000,000Estimated expenses of the Placing US$8.8mNet Proceeds of the Placing US$153.2mMarket Capitalisation on Admission US$162mMarket Capitalisation at the Placing Price assuming completion of the acquisition of the Initial Portfolio US$250m Enquiries: Aseana Properties Limited Contactable via Redleaf Fairfax I.S. PLC Tel: 020 7598 5368Paul Richards / James King Redleaf Communications Tel: 020 7822 0200Emma Kane / Samantha Robbins / Duncan McCormick Email: sr@redleafpr.com This information is provided by RNS The company news service from the London Stock Exchange