25th Mar 2008 07:01
Aseana Properties Limited25 March 2008 Date: 25 March 2008 On behalf of: Aseana Properties Limited ("Aseana" or "the Company") Embargoed for: 0700hrs Aseana Properties Limited • Second investment in Vietnam • To develop a prime city-centre site in Ho Chi Minh City, Vietnam Aseana Properties Limited (LSE: ASPL), a leading Asian property developer on theOfficial List of the London Stock Exchange, today announces that it has paid adeposit of approximately US$5 million and a contribution to the Fund ofInfrastructure Development of District 1 of approximately US$640,000 to thePeople's Committee of District 1, Ho Chi Minh City to secure the developmentrights for a prime, city-centre site in Ho Chi Minh City, Vietnam. Thedevelopment, to be named the Wall Street Centre ("Wall Street Centre"), islocated on approximately 4,500 sq m in District 1 of Ho Chi Minh City. Aseanawill undertake this development jointly with Binh Duong Corporation, a Vietnamproperty development company, of which Aseana will own 65 per cent. of theventure. The Wall Street Centre is estimated to have a gross development cost ofapproximately US$106 million. Development approvals from the appropriateauthorities for the project are currently expected to be obtained in the thirdquarter of 2008. The Wall Street Centre development is a prime Grade A officedevelopment consisting of two office towers. The development is expected toattract both local and international banks, brokerage and securities firms andprofessional services firms due to its location at the heart of the financialdistrict of Ho Chi Minh City. This investment is the Company's second in Vietnam. In November 2007 Aseanaannounced the acquisition of 202,800 sq m of sea-front land to develop a luxuryresort hotel and residences on China Beach, Danang. Commenting on the latest investment, Dato' Mohammed Azlan bin Hashim, Chairmanof Aseana Properties Limited said: "We are honoured to be given the opportunity by the Government of Vietnam todevelop this prime location in Ho Chi Minh City, the commercial centre ofVietnam. Vietnam's rapid economic growth, in particular since its accessioninto the World Trade Organisation in January 2007, has made Ho Chi Minh City thespotlight of both multinationals and local corporations wishing to establish astrong presence in Vietnam. The Wall Street Centre is designed to meet theincreasing demand for office space in the City. We continue to work on a number of similar opportunities in prime locations inVietnam and we look forward to bringing further transactions to fruition for ourinvestors." Enquiries: Aseana Properties Limited Contactable via Redleaf Redleaf Communications Tel: 020 7822 0200Adam Leviton / Samantha Robbins Email: [email protected] 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 ExchangeRelated Shares:
Aseana Prop.