First Project Licensed in Vie

RNS Number : 8200X

Aseana Properties Limited

30 June 2008

 



Date:                    30 June 2008

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

Embargoed for:    0700hrs

Aseana Properties Limited

• First project licensed in Ho Chi Minh City, Vietnam

• To develop residential, office, serviced apartment and retail mall on a prime city-centre site

Aseana Properties Limited (LSE: ASPL), a leading Asian property developer on the Official List of the London Stock Exchange, today announces that it has received an Investment License from the People's Committee of Ho Chi Minh City to develop a prime City Centre site in District 4 of Ho Chi Minh City, Vietnam.  

The development, to be named the Horizon Place, is located on a site with an area of approximately 8,400 m2.  Aseana Properties will undertake this development jointly with Binh Duong Corporation, a Vietnam property development company.  Aseana Properties will own 65% of the venture and is expected to invest approximately US$11.5 million in the development.

Horizon Place will consist of two residential towers, an office-serviced apartment tower and a retail mall with a total gross floor area of approximately 92,500 m2. The development is estimated to have a gross development value of approximately US$200 million.  Horizon Place is strategically located at the periphery of District 4, adjacent to District 1, the central business and commercial district of Ho Chi Minh City. Located along the main thoroughfare of Nguyen Thai Hoc Boulevard, and with a commuting time of less than 5 minutes to the heart of the city, Horizon Place is expected to draw dwellers and businesses looking for a central location that is within easy reach of District 1 and the southern districts of Ho Chi Minh City.  Development of Horizon Place is expected to commence in the fourth quarter of 2008. 

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

'We are delighted to receive the Investment License for the Horizon Place development.  Horizon Place is expected to change the urban landscape of District 4 in Ho Chi Minh City, bringing an improved quality of life, work and leisure to the area. Aseana Properties, together with our partner, has worked with the authorities for the past year to optimise the development concept to ensure the project meets its social, environmental and commercial objectives.  The Investment License is a culmination of these efforts and the beginning of an exciting phase of development for this project. This investment is also a testament of our confidence and commitment to the long-term potential of Vietnam as a growth economy.'

Enquiries:

Aseana Properties Limited	Contactable via Redleaf
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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