16th Aug 2007 11:06
Aseana Properties Limited16 August 2007 Date: 16 August 2007 On behalf of: Aseana Properties Limited ("Aseana" or "the Company") Aseana Properties Limited • Aseana Properties Limited and MRCB form joint-venture for Office Towers and Hotel development Aseana Properties Limited (LSE: ASPL), an Asian property developer investing inMalaysia and Vietnam, announces it has entered into a joint venture withMalaysian Resources Corporation Berhad, a leading property and constructioncompany in Malaysia, to acquire 95,131 square feet of land in Kuala LumpurSentral's Lot G ("the Land") from Kuala Lumpur Sentral Sdn. Bhd. (KLSSB) for atotal consideration of approximately US$29 million. A Sale and Purchase Agreement was signed earlier today between KLSSB andExcellent Bonanza Sdn. Bhd, a company incorporated in Malaysia. Itsshareholders are Malaysian Resources Corporation Berhad, with 60% of the shares,and Aseana Properties Limited, which holds the remaining 40% of the shares. The development plan for the Land is for a boutique business hotel and twooffice towers with a combined floor area of approximately 1,146,000 square feetand a gross development value of approximately US$180million. Kuala Lumpur Sentral is an exclusive urban centre built around Malaysia'slargest transit hub, supporting six rail networks, namely the exclusive KualaLumpur International Airport Express Rail Link, Light Rail Transit, Monorail,Commuter and intercity services. It is close to Kuala Lumpur's Central BusinessDistrict with direct connections to the major arterial roads of Kuala Lumpur anda number of major highways. The whole development is well-placed for access,within an integrated, self contained environment. Many multinational companieshave offices in the area, including General Electric, Cisco Systems andPricewaterhouseCoopers, as well as The Hilton Kuala Lumpur and Le Meridien. Commenting on the latest acquisition, Dato' Mohammed Azlan bin Hashim, Chairmanof Aseana Properties Limited, said: "We believe this to be a sound investment as Kuala Lumpur Sentral is fastemerging as a premier development in Malaysia due to its location and successfulinfrastructure. Aseana Properties will typically invest in development projectsat the pre-construction stage and selectively invest in projects-in-constructionand newly completed projects with potential for high capital appreciation,making Kuala Lumpur Sentral an attractive investment due its physical quality,standards and accessibility." Enquiries: Aseana Properties Limited Contactable via Redleaf Redleaf Communications Tel: 020 7822 0200Emma Kane / Samantha Robbins Email: [email protected] Fairfax I.S. PLC Tel: 020 7598 5368James King Notes to Editors About Aseana Properties • 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 About MRCB Malaysian Resources Corporation Berhad is one of the leading urban propertydevelopers and engineering and construction players in the country. The Groupspecializes in civil and energy infrastructure development including beachrehabilitation projects, road works, road concessions, educational colleges,hospitals, power plants, and is the nation's biggest developer of high-voltagetransmission networks. The Group currently maintains an order book of RM2.4billion. About Kuala Lumpur Sentral Kuala Lumpur Sentral is an exclusive urban centre built around Malaysia'slargest transit hub, offering global connectivity, excellent investmentopportunities, business convenience and an international lifestyle. At the nucleus of Kuala Lumpur Sentral is the RM1.1 billion world-class transithub, Stesen Sentral. Its infrastructure supports six rail networks, namely theexclusive KLIA Express Rail Link, LRT, Monorail, Commuter and intercityservices. With direct connections to the major arterial roads of Kuala Lumpurand a number of major highways, the development is well-placed for access,within an integrated and self-contained live, work and play environment. Kuala Lumpur Sentral is focused on offering an international lifestyleexperience incorporating prestigious business offices, five-star hotels, retailand lifestyle amenities and ultra-modern condominiums. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Aseana Prop.