Aseana Prop. Regulatory News (ASPL)

31 May 2007 07:01

Aseana Properties Limited31 May 2007 Date: 31 May 2007On behalf of: Aseana Properties Limited ("Aseana" or "the Company")Embargoed until: 0700hrs Aseana Properties Limited• Second investment in property portfolio• Total investment of US$65.5m in one property in Malaysia Aseana Properties Limited (LSE: ASPL), an Asian property developer investing inMalaysia and Vietnam, today announces it has completed its second acquisitionsince listing on the Main List of the London Stock Exchange in April 2007. Aseana is investing US$65.5 million in an upscale residential project inMalaysia, named Seni Mont' Kiara. Seni Mont' Kiara is a 605-unit luxurycondominium development located in Mont' Kiara, Kuala Lumpur. This project sitson 8.83 acres of freehold land and will consist of two 46-storey blocks and two16-storey low rise blocks. The Gross Development Value of the project isapproximately US$286 million and construction has commenced. The Company has acquired the property from Legacy Essence Limited ("Legacy") fora consideration of US$65.5 million (RM225.0 million), which is made up ofapproximately US$39.1 million (RM134.9 million) in Aseana shares and US$26.4million (RM91.1 million) in cash, which will be paid from the Company's existingfunds. The property was the subject of an Exclusivity Agreement between Legacy and theCompany prior to flotation, full details of which are contained in the ListingProspectus published by the Company. The Company subsequently entered into anAcquisition Agreement with Legacy on 27 April 2007. The development of thisproperty will be managed by Ireka Development Management Sdn. Bhd., a whollyowned subsidiary of Ireka Corporation Berhad, a company listed on BursaMalaysia. Aseana has invested US$40.9 million of the US$162 million raised at flotationand is on track to invest the remainder of the funds by April 2008. The Companyis in detailed discussions regarding a number of potential acquisitions in bothVietnam and Malaysia. Commenting on the latest acquisition, Dato' Mohammed Azlan bin Hashim, Chairmanof Aseana Properties Limited, said: "Ireka Development Management, the Manager, has had considerable success withluxury residential developments in the Mont Kiara area of Kuala Lumpur inMalaysia, which is popular with the growing young, upper middle class populationin the city. Mont Kiara is also a favourite amongst the expatriates' communityin Kuala Lumpur. We have every confidence that this success will be replicatedwith this development and the other Mont Kiara properties in Aseana's portfolio. "Seni Mont Kiara is the final development making up the Initial PropertyPortfolio that we highlighted at the time of our flotation on the Main Market ofthe London Stock Exchange. These properties are representative of the type ofdevelopments we are targeting and provide a solid foundation from which to rollout our investment strategy in Malaysia and Vietnam." Enquiries: Aseana Properties Limited Contactable via Redleaf Redleaf Communications Tel: 020 7822 0200Emma Kane / Samantha Robbins / Paul Dulieu 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: • An increasing standard of living and urbanisation driven by a burgeoning young and middle class population • Clear Government role in encouraging participation of private sectors in real estate development, as well as encouraging and promoting land and property ownership • Improving availability of mortgages to encourage property ownership • 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