Aseana Prop. Regulatory News (ASPL)

28 Sep 2007 18:09

Aseana Properties Limited28 September 2007 Date: 28 September 2007On behalf of: Aseana Properties Limited ("Aseana" or the "Company" or "ASPL") Aseana Properties Limited• INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2007 Aseana Properties Limited (LSE: ASPL), an Asian property developer investing inMalaysia and Vietnam, is pleased to announce its interim results for the sixmonth period ended 30 June 2007. Highlights • Revenue of US$10.01 million • Profit before tax of US$1.8 million • Announcement of first acquisition on 15 May 2007 with a total gross development value of approximately US$440 million • Invested in an upscale residential project in Malaysia with a gross development value of approximately US$330 million completing the Initial Portfolio. • Further investments in three new projects in Malaysia with expected gross development value of approximately US$382 million • Conditional agreements and memorandum of understandings in respect of seven projects in Vietnam. • Acquisition pipeline remains strong Commenting on the Company's results, Dato' Mohammed Azlan bin Hashim, Chairmanof Aseana Properties Limited, said: "We are pleased with the results to 30 June 2007 and the progress we have madesince our recent admission to the London Stock Exchange. With continuing dynamiceconomic fundamentals in both Malaysia and Vietnam, we are confident in bringingour property portfolio to fruition. "The Board looks forward to the remainder of the financial year and providingour investors and the market with further progress of our investment pipeline." Enquiries: Aseana Properties Limited Contactable via Redleaf Redleaf Communications Tel: 020 7822 0200Samantha Robbins / Adam Leviton Email: sr@redleafpr.com Fairfax I.S. PLC Tel: 020 7598 5368James King CHAIRMAN'S STATEMENT Following our listing on the 5th April 2007, the Group has recorded a revenue ofUS$10.01 million and a profit before tax of US$1.8 million, mainly attributableto progress billings by two of its property development projects, i-Zen @ KiaraI and Tiffani by i-Zen, both located in Mont Kiara, Kuala Lumpur Malaysia. Acquisition of Initial Portfolio On 15 May 2007, ASPL announced it had completed its first acquisition. Theacquisition comprised four properties in Malaysia namely i-ZEN@Kiara I, Tiffaniby i-ZEN, one Mont' Kiara by i-ZEN and Sandakan Harbour Square offering a mix ofresidential and commercial projects in various stages of development. Theproperties were acquired from Ireka Corporation Berhad for a consideration ofapproximately US$63.4 million. Total gross development value of the fourproperties is approximately US$440 million. Ireka Development Management, theManager of ASPL will manage the development of the acquired properties. On 31 May 2007, ASPL invested in an upscale residential project in Malaysia,named SENI Mont' Kiara. ASPL has acquired the property from Legacy EssenceLimited for a purchase consideration of US$65.5 million. The gross developmentvalue of the project is approximately US$330 million. These two acquisitions completed the Initial Portfolio that was contemplated inthe ASPL's Prospectus. Status of Property Portfolio Since its listing on 5 April 2007, ASPL successfully launched three projects:the office suites component of one Mont Kiara by i-ZEN, named bz-hub in April2007 (of which 75% of available units were released for sale); Phase 1 of theultra-luxurious condominium development of SENI Mont Kiara in July 2007; and theretail lots of Phase 2 of Sandakan Harbour Square in April 2007. Like otherASPL on-going developments, these new launches have been well received by themarket. Projects % Sales As At August 2007 i-ZEN@Kiara I 98%Tiffani by i-ZEN 78%one Mont' Kiara by i-ZEN - bz hub 100%Sandakan Harbour Square 90% Phase 1 retail lots 40% Phase 2 retail lotsSENI Mont' Kiara - Phase I 52% New Investments The Company has continued to make good progress since 30 June 2007 with theannouncement of three further investments. On 13 August 2007, ASPL announced that it has entered into an agreement topurchase a plot of development land of approximately 54,000 square foot in theMont' Kiara area of Kuala Lumpur, Malaysia. ASPL will acquire the development land via acquisition of United TimeDevelopment Sdn. Bhd. for a total cash consideration of approximately US$3.13million, which is equivalent to approximately US$58 per square foot. The development land is situated in the Mont Kiara area, an exclusiveresidential and commercial area in Kuala Lumpur. Ireka Development Management,the Manager of ASPL, is currently in the process of finalising the developmentplans for the land, which is envisaged to include an investment grade officetower and an integrated commercial area. On 16 August 2007, ASPL announced it has entered into a joint venture withMalaysian Resources Corporation Berhad (MRCB), a leading property andconstruction company in Malaysia, to acquire 95,131 square feet of land in KualaLumpur Sentral's Lot G from Kuala Lumpur Sentral Sdn. Bhd. (KLSSB) for a totalconsideration of approximately US$29 million. With a 40% stake in the joint venture, ASPL and MRCB will jointly develop twooffice towers and a boutique business hotel, estimated to have a GDV ofapproximately US$180 million. Kuala Lumpur Sentral is an exclusive urban centrebuilt around Malaysia's largest transit hub supporting six rail networksincluding a high speed rail access to the Kuala Lumpur International Airport.Many multinational companies currently have offices in the area includingGeneral Electric, Cisco Systems and PricewaterhouseCoopers. On 28 August 2007, ASPL announced 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. 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. Investment Pipeline ASPL is in detailed discussions regarding a number of potential acquisitions inVietnam. ASPL has entered into conditional agreements and memorandum ofunderstandings in respect of seven projects in Vietnam. These projects arelocated in Ho Chi Minh City, Hanoi and Danang, and if successful, are expectedto require approximately US$100 million of investment from ASPL. ASPL has submitted development plans for three projects to the authorities inVietnam to obtain development approvals to further pursue these opportunities.The Company expects to commence construction on at least one of theseopportunities in early 2008. Dato' Mohammed Azlan bin Hashim Non-executive Chairman28 September REPORT OF THE MANAGER Vietnam Economic Update Economic growth for the first half of the year has been strong with GDP growthof 7.87% year-on-year, led, in large part, by the construction and industrialsectors. Foreign direct investment also grew steadily by 8% to US$5.2 billionfor first half of the year, on-course to at least equal the FDI recorded in year2006 of US$9.9 billion. The continued strong economic growth and increase in foreign direct investmentshave greatly contributed to the robust growth in the real estate sector. Thereal estate sector has experienced growth across all sectors of the marketincluding residential, office, retail and hotels. Overall, commercial andretail real estate are the biggest benefactors of the increased internationalinterest in Vietnam. Amidst the strong growth, the economy is facing inflationary pressures, withfirst half CPI recorded at 7.8%. Government has however taken measures to reinthe economy, including tightening of State budget, closer monitoring of creditactivities in the market and more stringent application of market basedmechanism towards land and natural resources transactions. The entry into the World Trade Organization (WTO) at the beginning of the yearhas allowed more foreign firms to operate in the country. The membership hasadded momentum to development and market-oriented reforms. At the recently concluded National Assembly in early August, the Prime Ministerannounced reforms targeted at improving the effectiveness of the Government'srole in the economy. These reforms include streamlining of the number ofministries from 26 to 22, and the appointment of two relatively young anddynamic deputy prime ministers, with a strong economic background. Overview of Property Market in Vietnam Residential • Strong investment wave from Asia: Korea, Japan, Singapore. Foreign investors are keen on buying projects already licensed and under construction instead of leasing land or developing from the beginning; • Prices of high end residential condominiums in Ho Chi Minh City with good zoning and infrastructure remain high, with prices ranging from US$1,500 to US$4,000 per square meter; • Residential for lease sector in HCMC is in great demand, with average occupancy of 97%, and rentals up by 20% from 1Q07 to 1Q07 to US$35 psm per month; • At present, the larger cities like HCMC and Hanoi are facing a shortage of residential housing due to high population density and government imposed restrictions on land use. Due to the shortage, residential apartments units are sold off-plan and resold in the market many times before the completion; • In HCMC, the department of housing and land management services estimates that an additional 103 million sqm of housing will be needed by 2010 to meet their expected average housing area of 14.2 sqm per capita. Offices • Rental rates for Grade A offices in Ho Chi Minh City has increased by approximately 39% from US$23 psm in 1Q06 to US$35 psm in 1Q07; • Grade A office rental rates in Ho Chi Minh City reflects upward momentum and growing demand vis-a-vis tight supply with 100% occupancy rate; • Demand for Grade A and B offices in Hanoi continue to increase, with Grade A rental rates increasing by 5% from US$30 psm in 4Q06 to US$32 psm in 1Q07; • Further demand growth will come from local, smaller players who are aiming to upgrade their offices and transfer to bigger, high-rise office buildings, and show that they can compete in the global market; • Demand is also likely to be driven by the increasing number of entrepreneurs who are looking to set up office for the first time. Retail • Vietnam is the third largest country for retail development after India and Russia, as ranked by consultancy AT Kearney, driven by its current low base, and its 86 million consumers; • Being a member of the World Trade Organisation has reduced barriers to entry for foreign retailers and encourages international brand names to Vietnam, hence, increasing demand for high-quality retail space. In the recent months, brands such as Louis Vuitton, Furla, FCUK, Lacoste and Burberry have entered the HCMC market; • Prime retail rental rates in Ho Chi Minh City experienced a healthy growth rate of approximately 21% from US$140 psm in 1Q06 to US$170 psm in 1Q07; • New retail malls in Ho Chi Minh City such as Eden Mall and Saigon Square, launched in December 2006 and January 2007 respectively is experiencing occupancy rate of 90% to 100%. Hospitality • Vietnam is one of the safest and most attractive destinations in the region. The Vietnam National Administration of Tourism reported that in the first 4 months of 2007, the nation attracted 1.4 million arrivals-an increase of 12.5% over last year's figure; • Most of 5 and 4 star hotels rooms in Hanoi came on stream in 1990s and has strong occupancy rate over the year. However, there is no new supply over the last few years. There is also a shortage of quality hotel rooms; • The growing number of tourists in Vietnam provides a good incentive for hospitality property players to come into the market, not only for the prime cities like Hanoi and HCMC, but also for the more prominent coastal areas such as Danang and Hoi-An. Source: Company research, CBRE Vietnam Report Malaysia Economic Update Overall growth of the Malaysian economy in the first half of the year hasremained favourable with the slower growth in the external sector being balancedby stronger growth in domestic demand. Sectors that performed best in the firsthalf of 2007 were property, oil and gas and plantations. The Government is committed to progressively liberalise the economy. Positivesteps by the Government includes the abolishment of Real Properties Gain Tax(RPGT) for both local and foreign individuals and companies, removal of ForeignInvestment Committee (FIC)'s approval for individual foreigners when purchasingproperties, relaxation of local mortgage market for foreigners, increasedflexibility for domestic money to move funds offshore and future relaxation ofthe exchange administration rules. The Government has also announced that housing development approvals would beimproved to 4 to 6 months from the current 1 to 2 years. In addition, processingtime for buyers would be reduced to cut red tape and draw more investors.Developers that 'build-and-sell' will be exempted from the obligatory low costhousing quota and be given priority in obtaining approvals. During the period 1 May - 28 June 2007, the Ringgit depreciated against USdollar and Pound sterling, but appreciated against the Japanese yen and remainedunchanged against the Euro. The Ringgit also depreciated against other regionalcurrencies in the range of 0.3% - 3.9%. Inflation moderated in the first half of 2007 to a level of 1.4% in June andaveraged 2% for the period as a whole, setting a conducive environment forbusiness growth. Following the various positive measures, the market anticipates futurepossibilities for more property incentives in the September 2007 Budget such ashigher Employee Provident Fund withdrawal for property purchases and stamp dutywaiver. Overview of Property Market in Malaysia Residential • The high-end residential sector appears to be the main benefactor of the abolishment of RPGT, with new launches of high-end condominiums in 2Q07 registering an impressive 57% sales, compared to 31% sales for new launches in previous quarter; • Although the stock of high-end condominiums has increased to 1,034 units in 2Q07 from 896 units in the 1Q07, the sales rate has also edged up to 47% this quarter (cf. 37% previous quarter), signalling a healthy appetite for high-end condominium developments; • Selling prices in the Mont Kiara has reached new highs in the region of RM650 psf, whilst prices in KLCC has breached RM1,200 psf; • The occupancy rate for these high-end condominium developments stood at a healthy 93% in 2Q07, with reported net rental yields in the region of 6.5% to 8%; • Despite continued rise in capital values, Malaysia generally offers good value in high-end developments, where ownership regulations and access to funding are relatively simple compared to other countries in the region; • Demand from foreigners is expected to increase and will continue to drive prices upwards in 2007. Mont Kiara, KLCC and Ampang Hilir will remain as choice locations for foreigners. Offices • The take-up rate for office space in the Bangsar/Pantai locality continued to outpace that of the Golden Triangle and Central Business District, with the banking & finance sector being the main demand driver; • Occupancy rates and supply of prime office in select areas remains high as of Q207: Bangsar/Pantai: 78% (1.3m sf), Damansara Heights: 94% (0.9m sf), CBD: 93% (2.5m sf), Golden Triangle: 91% (5.1m sf); • Rental values remained stable across the market, with prime offices rental within the range of RM4.50 psf per month to RM7.50 psf per month. Super prime offices such as Petronas Twin Towers and Menara Maxis in KLCC are near 100% occupancy with record rental levels of RM9.00 to RM11.00 psf per month. Net yields are in region of 6% to 8%; • Three en-bloc transactions of prime offices took place in 1H07: Wisma Technip (RM536 psf), Wisma Denmark (RM527 psf) and Plaza Sentral (RM527 psf). Retail • The retail market is expected to record strong activity in 2007 as nation celebrates its 50th year independence coupled with it being a Visit Malaysia Year; • The extensions of popular suburban retail malls such as MidValley Megamall and Sunway Pyramid in the suburbs are slated for completion in September 2007 together with the completion of KL Pavillion in the city centre; • Market rentals remained stable with ground floor locations in city centre at RM16 to RM26 psf per month, and suburban malls at RM12 to RM20 psf per month, with net yields in region of 8% to 11%; • There were no prime retail transactions in 1H07, but market prices for prime retail is estimated to be in region of RM680psf; • 1H07 saw the debut of several international retailers in Malaysia, namely Ted Baker, Massimo Dutti and Principles. Hospitality • Malaysia recorded a record tourist arrivals of 17.55 million in year 2006, with 1Q07 recording 4.9 million tourists, 9.8% increase q-on-q; • Strong tourist arrivals expected in 2007 with Tourism Malaysia engaging in worldwide publicity blitz of Visit Malaysia Year 2007; • This is already evident in Average Daily Rate (ADR) achieved in 1H07 for top- tier hotels of RM413, a 10% increase from full year 2006 ADR; • Average occupancy rate increase from 64.9% in 1Q07 to 68.4% in 2Q07, with occupancy rates expected to rise in 3Q07; • Approximately 1,816 rooms are planned in Kuala Lumpur city from 2007 to 2009, adding to current supply of 33,495 rooms. None of the new supply however constitutes international chains. Source: Company research, Jones Lang Wootton 1Q07 & 2Q07 Report Ireka Development Management Sdn BhdManager28 September CONSOLIDATED INCOME STATEMENT Six months ended 30 June 2007 Unaudited Six months ended 30 June 2007 US$Continuing operationsRevenue 10,012,490Cost of sales (8,165,143) ----------------Gross profit 1,847,347 ----------------Other operating income 1,572,428Administrative expenses (42,944)Management fee (772,319)Other operating expenses (772,736) ----------------Operating profit 1,831,776Interest expense (18,898) ----------------Profit before taxation 1,812,878Taxation (488,454) ----------------Profit after taxation 1,324,424Equity minority interest 53,832 ----------------Profit for the period 1,378,256 ================Earnings per share (cent) Basic and diluted 1.5c Condensed Consolidated Statement of Recognised Income and Expense Six months ended 30 June 2007 Unaudited Six months to 30 June 2007 US$ Profit for the period 1,324,424Minority interest arising on business combinations 1,781,490Exchange differences on translation of foreign operations (184,175) ----------------Total recognised income and expense for the period 2,921,739 Attributable to:Equity holders of the parent 1,212,102Minority interests 1,709,637 ================ CONSOLIDATED BALANCE SHEET As at 30 June 2007 Unaudited As at 30 June 2007 US$Non-current assets Property, plant & equipment 346,169Goodwill 125,600,958Land held for property development 5,799,101Long term receivables 2,676,950 ------------------ 134,423,178 Current assets Inventories at cost 2,134,410Property development costs 78,378,270Trade and other receivables 10,218,279Amount owing by associates 270,270Fixed deposits 276,981Cash and bank balances 125,991,535 ------------------ 217,269,745 ------------------Total assets 351,692,923 EquityShare capital 25,000,000Share premium account 215,690,484Exchange fluctuation reserves (166,154)Retained profits 1,378,256 ------------------Shareholders' equity 241,902,586Equity minority interests 1,709,637 ------------------Total equity 243,612,223 Current liabilitiesTrade and other payables 32,729,004Hire purchase liabilities 22,695Bank overdrafts & borrowings 7,384,226Current tax liabilities 2,549,595 ------------------Total current liabilities 42,685,520 Non-current liabilitiesHire purchase liabilities 45,214Bank term loans 35,855,490Long term loans 29,477,705Deferred tax liabilities 16,771 ------------------Total non-current liabilities 65,395,180 ------------------Total liabilities 108,080,700 ------------------Total equity and liabilities 351,692,923 ================== Consolidated Cash Flow Statement Six months ended 30 June 2007 Unaudited Six months to 30 June 2007 US$ Profit from operating activities 1,831,776 -----------------Depreciation 11,204Changes in working capital 6,644,491Interest paid (18,898)Income tax paid (71,572) -----------------Net cash (used by)/ generated from operating activities 8,397,001 -----------------Investing activitiesAcquisition of subsidiaries, net of cash (47,909,198)Advances to associate (18,251) -----------------Net cash outflow from investing activities (47,927,449) Financing activitiesNet Proceeds of issues of share capital 152,690,484Repayment of bank borrowings (32,121,543)Drawdown of term loans 43,926,194Payment of hire purchase installments (94,087)Repayment to amount owing to directors (889,021) -----------------Net cash inflow from financing activities 163,512,027 -----------------Net (decrease)/ increase in cash and cash equivalents 123,981,579 -----------------Cash and cash equivalents at start of period 0 Cash and cash equivalents at end of period 123,981,579 ================= NOTES TO THE INTERIM FINANCIAL STATEMENTS 1 Basis of preparation These interim financial statements have been prepared in accordance withInternational Financial Reporting Standards (IFRS). The interim results have not been audited and do not constitute statutoryaccounts. IFRS are subject to continuing review and amendment by the InternationalAccounting Standards Board and subsequent endorsement by the European Commissionand therefore are subject to change. Therefore, in determining the Group's IFRSaccounting policies, the Board of Directors has used its best endeavours inmaking assumptions about those IFRS expected to be effective and available foradoption. The Interim Report and financial statements were approved by the Board ofDirectors on 28 September 2007. 2 Significant accounting policies The accounting policies adopted are consistent with those followed in theadmission document issued in relation to the admission of Aseana PropertiesLimited ("the Company") to the London Stock Exchange on 5 April 2007, with theexception of the following additions: Basis of consolidation The interim consolidated financial statements comprise the financial informationof the Company and its subsidiary undertakings ("the Group") as at 30 June 2007.The financial information of the subsidiaries are prepared for the samereporting period as the Company using consistent accounting policies. All inter-company balances, transactions, income and expense and profits andlosses resulting from intra-group transactions are eliminated in full.Subsidiary undertakings are fully consolidated from the date of acquisition,being the date on which the Group obtains control, and continue to beconsolidated until the date that such control ceases. Control is normallyevident when the Company owns more than 50 per cent of the voting rights of acompany's share capital. The purchase method of accounting is used to account for the acquisition ofsubsidiary undertakings by the Group. The cost of an acquisition is measured asthe fair value of the assets given, equity instruments issued and liabilitiesincurred or assumed as at the date of exchange, plus costs directly attributableto the acquisition. Goodwill and intangible assets IFRS 3 requires that on an acquisition the difference between the cost ofacquisition and the fair value of net assets acquired be analysed betweengoodwill and specific intangible assets acquired. Goodwill arising on the acquisition of a subsidiary undertaking represents theexcess of the cost of the acquisition over the Group's interest in the net fairvalues of the identifiable assets, liabilities, and contingent liabilities ofthe subsidiary undertaking recognized at the date of acquisition. Goodwill isinitially recognised as an asset at cost and is subsequently measured at costless any accumulated impairment losses. For the purpose of impairment testing, goodwill is allocated to each of theGroup's cash-generating units expected to benefit from synergies of thecombination. Cash-generating units to which goodwill has been allocated aretested for impairment annually, or more frequently where there is an indicationthat the unit may be impaired. If the recoverable amount of cash-generatingunits is less than the carrying amount of the unit, the impairment loss isallocated first to reduce the carrying amount of any goodwill allocated to theunit and then to the other assets of the unit pro-rata on the basis of carryingamount of each asset in the unit. An impairment loss recognized for goodwill isnot reversed in a subsequent period. Comparative figures No comparative figures have been presented for the period ended 30 June 2006 asthe Company was incorporated on 22 September 2006. No comparative figures have been presented for the period from incorporation on22 September 2006 to 31 December 2006 as the only transaction in the periodrelated to the issue of 2 shares of US$0.05 par value. 3 Segment information Since Malaysia is the only location of the Group's current property developmentportfolio, these financial statements and related notes represent the resultsand financial position of the Group's primary business segment. 4 Earnings per ordinary share Basic Basic earnings per share after taxation and minority interest in the periodended 30 June 2007 is calculated by dividing the consolidated profit ofUS$1,378,256 attributable to equity holders of the Company by the weightedaverage number of ordinary shares of USD0.05 each in issue during the period of93,463,862. Diluted Diluted earnings per share is calculated by adjusting the weighted averagenumber of ordinary shares in issue to assume conversion of all potentialdilutive ordinary shares in issue in the period. There were no potentialdilutive ordinary shares in issue in the period. 5 Business combinations On 15 May 2007, the Group acquired 100% of the share capital of Ireka Land SdnBhd. The acquired business contributed revenues of US$10.01 million and profitbefore tax of US$1.80 million to the Group for the period from 15 May 2007 to 30June 2007. If the acquisition had occurred on 1 January 2007, Ireka would haveadded approximately US$59.27 million to Group income and approximately US$5.89million to profit before tax for the period. The assets and liabilities arisingon acquisitions during the period have been provisionally determined for thepurposes of this announcement. Details of net assets acquired and goodwill are as follows: Purchase consideration: US$- cash paid 14,529,309- share consideration 34,587,457 ---------------------------Total purchase consideration 49,116,766Fair value of net assets acquired 8,390,228 ---------------------------Goodwill 40,726,538 ================= The assets and liabilities arising from the acquisition are as follows: Provisional Fair Value and Acquiree's Carrying Amount US$Property, plant and equipment 217,175Property development costs 51,548,127Trade and other receivables 10,509,886Cash and bank balances 4,200,723 ------------------Total assets 66,475,911 Hire purchase liabilities 91,327Bank term loans 6,055,611Long term loans 0Deferred tax liabilities 10,287Trade and other payables 17,878,429Bank overdraft and borrowings 32,042,284Tax liabilities 2,007,730CMA Global HedgeTotal liabilities 58,085,668Minority interest 15 ------------------Net assets acquired 8,390,228 ================== On 15 May 2007, the Group acquired 60% of the share capital of ICSD Ventures SdnBhd. The acquired business has not recorded any revenue but contributed a lossbefore tax of US$105,563 to the Group for the period from 15 May 2007 to 30 June2007. If the acquisition had occurred on 1 January 2007, Ireka would have addedapproximately US$1.10 million to Group income and approximately US$0.07 millionto profit before tax for the period. The assets and liabilities arising onacquisitions during the period have been provisionally determined for thepurposes of this announcement. Details of net assets acquired and goodwill are as follows: Purchase consideration: US$- cash paid 6,018,057- share consideration 14,326,166 -----------------Total purchase consideration 20,344,223Fair value of net assets acquired 1,642,635 -----------------Goodwill 18,701,588 ================= The assets and liabilities arising from the acquisition are as follows: Provisional Fair Value and Acquiree's Carrying Amount US$Property, plant and equipment 140,198Land held for property development 5,885,930Inventories 2,167,598Property development costs 7,126,291Trade and other receivables 1,992,427Cash and bank balances 382,157 -----------------Total assets 17,694,601 Hire purchase liabilities 70,669Bank term loans 5,862,481Long term loans 0Deferred tax liabilities 6,745Trade and other payables 3,715,697Bank overdraft and borrowings 5,176,548Tax liabilities 124,721 -----------------Total liabilities 14,956,861Minority interest 1,095,105 -----------------Net assets acquired 1,642,635 ================= On 31 May 2007, the Group acquired 90.91% of the share capital of AmatirResources Sdn Bhd. The acquired business has not recorded any revenue butcontributed a loss before tax of US$25,740 to the Group for the period from 31May 2007 to 30 June 2007. If the acquisition had occurred on 1 January 2007,Ireka would have added approximately US$0.12 million to profit before tax forthe period. The assets and liabilities arising on acquisitions during the periodhave been provisionally determined for the purposes of this announcement. Details of net assets acquired and goodwill are as follows: Purchase consideration: US$- cash paid 27,342,084- share consideration 39,086,377 -----------------Total purchase consideration 66,428,461Fair value of net assets acquired 255,629 -----------------Goodwill 66,172,832 ================= The assets and liabilities arising from the acquisition are as follows: Provisional Fair Value and Acquiree's Carrying Amount US$Property development costs 14,523,080Trade and other receivables 1,279,034Cash and bank balances 290,496 -----------------Total assets 16,092,610 Bank term loans 7,474,714Long term loans 2,014,195Deferred tax liabilities 0Trade and other payables 2,758,460Bank overdraft and borrowings 2,903,227 -----------------Total liabilities 15,150,596Minority interest 686,385 -----------------Net assets acquired 255,629 ================= 6 Dividends The Company has not paid or declared any dividends during the financial periodended 30 June 2007. 7 Post balance sheet events On 13 August 2007, the Company entered into an agreement to purchase a plot ofdevelopment land in the Mont Kiara, Kuala Lumpur, for a total cash considerationof approximately US$3.13 million. On 16 August 2007, the Company acquired an indirect 40 per cent interest in aplot of land in Kuala Lumpur Sentral, Kuala Lumpur, for a total consideration ofapproximately US$29 million. On 28 August 2007, ASPL announced 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$11.67 million. 8 Consolidated changes of changes in equity US$At 22 September 2006 -Issue of share capital - -----------------At 31 December 2006 -Issue of share capital 240,690,484Minority interest arising on business combinations 1,781,490Exchange translation differences (184,175)Net profit for the period 1,324,424 -----------------At 30 June 2007 243,612,223 ================= 9 Interim statement Copies of this interim statement are available on the Company's websitewww.aseanaproperties.com or from the Company's registered office at WalkerHouse, PO Box 72, 28-34 Hill Street, St. Helier, Jersey, JE4 8PN. This information is provided by RNS The company news service from the London Stock Exchange