Acquisition

Aseana Properties Limited 26 November 2007 Date: 26 November 2007 On 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 in Malaysia and Vietnam, today announces it has made its first acquisition in Vietnam by entering into an agreement with The Nam Khang Company Corporation ('The Nam Khang'), a property development company incorporated in Vietnam, to acquire 202,800 square metres of sea-front development land ('Land') on Duong ven bien Son Tra, Dien Ngoc, Danang. The estimated total development value of the project is US$150 million (£72.78 million). An agreement was signed between Aseana and The Nam Khang, enabling Aseana to acquire a 60% stake in the development project for US$18 million (£8.73 million). The remaining 40% stake is owned by The Nam Khang. The development land is situated on a 30-kilometre beach front known as The China Beach. The China Beach was voted by the Forbes magazine in June 2007 as one of the top ten most beautiful beaches in the world. The development plan for the Land consists of a luxury resort hotel and resort-themed residences. The luxury resort hotel comprises of a 3-storey hotel block as well as individual garden and beach resort villas with walled compound, lush garden and private pool. The resort-themed residences comprise of a high rise luxurious condominium tower. The development will also be equipped with supporting facilities such as a conference centre, spa village, retail village, two swimming pools, sports and recreational club and a beach club. It is envisaged that this development will be co-branded with and managed by a leading international resort and hotel operator. 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 under direct government management. It has enjoyed double digit GDP growth for the past five years fuelled by rapid foreign direct investments. It has the third busiest airport in Vietnam, with direct flights from other Asian cities such as Singapore and Bangkok, and offers easy connection from Ho Chi Minh City and Hanoi. Danang has established itself as a top tourist destination in Vietnam due to its pristine beaches and its central location close to four UNESCO designated world heritage sites. In line with the Government's master plan to further develop Danang into a premier resort destination, Danang has attracted new investments that will see it having, in the near future, international hotels such as Raffles, JW Marriot, Hyatt, Sofitel and Crowne Plaza, complemented by championship standard golf courses such as a 36-hole Greg Norman designed course and an 18-hole golf course designed by Colin Montgomery. Commenting on the latest acquisition, Dato' Mohammed Azlan bin Hashim, Chairman of Aseana Properties Limited said: 'We are delighted to announce our first acquisition in Vietnam, which we believe is in one of the most exciting resort destinations in the world This investment, coupled with the rapid growth of Vietnam as one of the top tourist destinations and holiday homes in South East Asia, will provide Aseana with a unique opportunity to develop a world class project, which will complement the Company's portfolio of high-end developments as well as provide a foothold to further develop its portfolio in Vietnam.' Enquiries: Aseana Properties Limited Contactable via Redleaf Redleaf Communications Tel: 020 7822 0200 Adam Leviton / Samantha Robbins Email: al@redleafpr.com Fairfax I.S. PLC Tel: 020 7598 5368 James 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
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