Sale of minority stake in project

RNS Number : 1605K

Aseana Properties Limited

23 June 2014

 



Aseana Properties Limited

("Aseana")

Sale of Minority Stake in Kuala Lumpur Sentral Office Towers & Hotel Project

Aseana Properties Limited (LSE: ASPL), a property developer in Malaysia and Vietnam listed on the Main Market of the London Stock Exchange, announces that it has entered into a share sale agreement with Malaysian Resources Corporation Berhad ("MRCB") to dispose of its 40 percent stake in Excellent Bonanza Sdn. Bhd. ("EBSB") for a cash consideration of RM20 million (US$6.21 million).  EBSB, a 60:40 joint venture company between MRCB and Aseana is the developer of the Kuala Lumpur Sentral Office Towers & Hotel Project (the "Project"), consisting of two Grade A office towers and a business hotel.

The disposal by Aseana represents an early realisation of profits from the Project, which was originally planned for December 2015 when the office towers are to be delivered to the buyer.  Construction of the office towers completed in December 2012 and leasing is currently underway.  The business hotel component of the Project was purchased by Aseana in 2013 and named the Aloft Kuala Lumpur Sentral Hotel, which remains in Aseana's portfolio.

The sale consideration is approximately a 11% discount to the latest Project RNAV of US$7.0 million published by Aseana as at 31 March 2014.  Aseana will record a gain of approximately US$2.2 million upon closing of the transaction, which is expected by the end of July 2014.

Dato' Mohammed Azlan Hashim, Chairman of Aseana, said: "The disposal of our stake in the Project is in line with the strategy of the Company to realise completed assets and to return capital to shareholders. This transaction represents the end of a successful partnership with MRCB.  Aseana is proud to have played a key role in completing a landmark project in the Kuala Lumpur Sentral area. We look forward to further success in operating and eventually realising our investment in the Aloft Kuala Lumpur Sentral Hotel."

 

For further information:

Aseana Properties Limited		Tel: [phone]
Chan Chee Kian		Email: [e-mail]
N+1 Singer		Tel: [phone]
James Maxwell (Corporate Finance) /Sam Greatrex (Sales)
Tavistock Communications		Tel: [phone]
Jeremy Carey / James Verstringhe		Email: [e-mail]

Notes to Editors:

London-listed Aseana Properties Limited (LSE: ASPL) is a property developer investing in Malaysia and Vietnam.

Ireka Development Management Sdn Bhd ("IDM") is the exclusive Development Manager for Aseana. It is a wholly-owned subsidiary of Ireka Corporation Berhad, a company listed on the Bursa Malaysia since 1993, which has over 45 years of experience in construction and property development. IDM is responsible for the day-to-day management of Aseana's property portfolio and the introduction and facilitation of new investment opportunities.

 

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