Acquisition

26 Nov 2007 07:01

Aseana Properties Limited26 November 2007 Date: 26 November 2007On behalf of: Aseana Properties Limited ("Aseana" or "the Company")Embargoed: 0700hrs Aseana Properties Limited • First acquisition in Vietnam• To develop luxury resort hotel and residences on China Beach, Danang Aseana Properties Limited (LSE: ASPL), an Asian property developer investing inMalaysia and Vietnam, today announces it has made its first acquisition inVietnam by entering into an agreement with The Nam Khang Company Corporation ("The Nam Khang"), a property development company incorporated in Vietnam, toacquire 202,800 square metres of sea-front development land ("Land") on Duongven bien Son Tra, Dien Ngoc, Danang. The estimated total development value ofthe project is US$150 million (£72.78 million). An agreement was signed between Aseana and The Nam Khang, enabling Aseana toacquire a 60% stake in the development project for US$18 million (£8.73million). The remaining 40% stake is owned by The Nam Khang. The development land is situated on a 30-kilometre beach front known as TheChina Beach. The China Beach was voted by the Forbes magazine in June 2007 asone of the top ten most beautiful beaches in the world. The development plan forthe Land consists of a luxury resort hotel and resort-themed residences. Theluxury resort hotel comprises of a 3-storey hotel block as well as individualgarden and beach resort villas with walled compound, lush garden and privatepool. The resort-themed residences comprise of a high rise luxurious condominiumtower. The development will also be equipped with supporting facilities such asa conference centre, spa village, retail village, two swimming pools, sports andrecreational club and a beach club. It is envisaged that this development willbe co-branded with and managed by a leading international resort and hoteloperator. Construction is expected to commence in second quarter of 2008. About Danang Danang is the fourth largest city in Vietnam and is one of the five cities underdirect government management. It has enjoyed double digit GDP growth for thepast five years fuelled by rapid foreign direct investments. It has the thirdbusiest airport in Vietnam, with direct flights from other Asian cities such asSingapore and Bangkok, and offers easy connection from Ho Chi Minh City andHanoi. Danang has established itself as a top tourist destination in Vietnam due to itspristine beaches and its central location close to four UNESCO designated worldheritage sites. In line with the Government's master plan to further developDanang into a premier resort destination, Danang has attracted new investmentsthat will see it having, in the near future, international hotels such asRaffles, JW Marriot, Hyatt, Sofitel and Crowne Plaza, complemented bychampionship standard golf courses such as a 36-hole Greg Norman designed courseand an 18-hole golf course designed by Colin Montgomery. Commenting on the latest acquisition, Dato' Mohammed Azlan bin Hashim, Chairmanof Aseana Properties Limited said: "We are delighted to announce our first acquisition in Vietnam, which we believeis in one of the most exciting resort destinations in the world Thisinvestment, coupled with the rapid growth of Vietnam as one of the top touristdestinations and holiday homes in South East Asia, will provide Aseana with aunique opportunity to develop a world class project, which will complement theCompany's portfolio of high-end developments as well as provide a foothold tofurther develop its portfolio in Vietnam." Enquiries: Aseana Properties Limited Contactable via Redleaf Redleaf Communications Tel: 020 7822 0200Adam Leviton / Samantha Robbins Email: al@redleafpr.com Fairfax I.S. PLC Tel: 020 7598 5368James King Notes to Editors • Ireka Development Management, the Manager, is a wholly-ownedsubsidiary of Ireka Corporation Berhad, a company listed on the Bursa Malaysiasince 1993, which has 40 years of experience in construction and propertydevelopment. • The Company will typically invest in development projects at thepre-construction stage, with a primary focus on location within the major citiesof Malaysia and Vietnam. • Investment will be made in projects where it is believed there willbe a minimum 30% annualised return on equity ("ROE") on investments in Vietnamand a minimum 20% ROE on investments in Malaysia. • No one underlying single asset will account for more than 30% of thegross assets of the Company at the time of investment. • It is the intention that the Net Proceeds of the Placing will befully invested in accordance with the investment policy within 12 months ofAdmission. • The Directors believe the following factors should providesustainable growth in the real estate sectors of both Malaysia and Vietnam: o An increasing standard of living and urbanisation driven by aburgeoning young and middle class population o Clear Government role in encouraging participation of private sectorsin real estate development, as well as encouraging and promoting land andproperty ownership o Improving availability of mortgages to encourage property ownership o Favoured Foreign Direct Investment (FDI) destinations driving demandfor commercial and industrial properties This information is provided by RNS The company news service from the London Stock Exchange