Aseana to develop first Hi-te

RNS Number : 0761C

Aseana Properties Limited

27 August 2008

 



Date:                     27 August 2008

On behalf of:         Aseana Properties Limited ('Aseana' or 'the Company')

Embargoed for:     0700hrs

Aseana Properties Limited

-   Major acquisition in Vietnam

-   To develop first International Hi-Tech Health Park in Ho Chi Minh City 

Aseana Properties Limited (LSE: ASPL), a leading Asian property developer on the Official List of the London Stock Exchange, today announces that it has acquired a 51% interest in the development of the International Hi-Tech Health Park in the Binh Tan District of Ho Chi Minh City, Vietnam. Aseana Properties will invest approximately US$27.6 million for the development, which has a total gross development cost of approximately of US$420 million. The project was licensed and approved by the People's Committee of Ho Chi Minh City on 10 July 2008 and is expected to commence development in the fourth quarter of 2008.

Located on 37.54 hectares of prime land, the International Hi-Tech Health Park will consist of world class private hospitals, mixed commercial, hospitality and residential developments with a healthcare theme. The project will be developed over five phases. The first phase of the development will be anchored by an international standard tertiary care, teaching hospital and supporting residences. The next phases will include medical centres, serviced apartments, offices, a retail mall and hotel, completing the integrated nature of the project. The various development components of the project have already attracted a number of well-known, international healthcare investors. Aseana Properties will perform the role of a master developer through the consortium, responsible for planning, developing and marketing the International Hi-Tech Health Park.

The International Hi-Tech Health Park, when completed will have approximately 1.01 million square metres of gross floor area, providing a world class integrated healthcare and commercial hub in a well designed park setting. The park will serve the population of some 8 million people in Ho Chi Minh City and is also expected to draw people from all over Vietnam and across from neighbouring Indochina countries.  

Commenting on the latest investment, Dato' Mohammed Azlan bin Hashim, Chairman of Aseana Properties Limited, said: 

'We are delighted to be part of a development project that will transform the healthcare industry in Vietnam. Being a populous nation of 85 million people, with expected growth of 1.4% CAGR, coupled with disposable income growing at 10% CAGR, over the next 5 years, the demand for quality healthcare will continue to grow as the economy expands.  

'A study by an international consultant commissioned by Aseana has shown that Vietnam has a shortage of good quality, international hospitals. As such, the Government has placed great priority and importance to the International Hi-Tech Health Park project, and has entrusted the private sector to spearhead its development. Aseana Properties is proud to lead the consortium of the private sector, and will employ its expertise and experience as a developer of premier property products to create an integrated, world-class healthcare and commercial hub.'

Enquiries:

Aseana Properties Limited	Contactable via Redleaf Communications
Redleaf Communications	Tel: [phone]
Adam Leviton / Samantha Robbins / Kathryn Hurford	Email: [e-mail]
Fairfax I.S. PLC	Tel: [phone]
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 typically invests in development projects at the pre-construction stage, with a primary focus on locations within the major cities of Malaysia and Vietnam.  

• Investment is 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.

• 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

 

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