Aseana Prop. Regulatory News (ASPL)

13 Aug 2007 07:06

Aseana Properties Limited13 August 2007 Date: 13 August 2007On behalf of: Aseana Properties Limited ("Aseana" or "the Company") Aseana Properties Limited • To purchase development land in Mont Kiara area of Kuala Lumpur, Malaysia for US$3.13 million Aseana Properties Limited (LSE: ASPL), an Asian property developer investing inMalaysia and Vietnam, today announces it has entered into an agreement topurchase plot of development land of approximately 54,000 square foot in theMont' Kiara area of Kuala Lumpur, Malaysia. Shortly before the listing of Aseana on the Main List of the London StockExchange, an opportunity arose to take part in a competitive tender to acquireplot of development land of approximately 54,000 square foot from TelekomMalaysia Berhad (TMB). As Aseana was in the final process of listing, IrekaEngineering & Construction Sdn. Bhd. (IECSB) undertook to tender on Aseana'sbehalf via a wholly owned subsidiary, United Time Development Sdn. Bhd. (UTD). In order to comply with the terms of the agreement with TMB, UTD will completethe process of obtaining the necessary approvals from the relevant authorities,including a development order approval from the City Hall of Kuala Lumpur, atwhich point Aseana will acquire UTD, the owner of the development land for atotal cash consideration of approximately RM10.8 million (US$3.13 million),which is equivalent to RM200 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 Aseana, 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. The Company is in detailed discussions regarding a number of potentialacquisitions in both Vietnam and Malaysia. The Company expects to announce the Net Asset Value (NAV) figure as at 30 June2007 on 22 August. 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