TIDMASPL
RNS Number : 3058T
Aseana Properties Limited
03 July 2018
Aseana Properties Limited
("Aseana" or the "Company")
Update on Progress of the Divestment of the Portfolio and
Results of AGM and Directorship Changes
Aseana Properties Limited (LSE: ASPL), a property developer in
Malaysia and Vietnam listed on the Main Market of the London Stock
Exchange, announces an update on the progress of divestment of the
Company's assets, which commenced following approval by
Shareholders at the Company's AGM on 23 April 2018.
The Directors have previously highlighted the impact of
difficult prevailing property market conditions in both Malaysia
and Vietnam on the speed of asset disposals.
Despite a general improvement in sentiment, the Malaysian
property market remains soft and is in a period of adjustment
following the nation's General Election on 9 May 2018, which
resulted in a change of Government formed by a new coalition of
political parties. This represents a watershed moment for Malaysia,
having been ruled by the same coalition government since it gained
independence in 1957. As a result, in the short term, investors,
especially overseas investors, are still adopting a "wait-and-see"
approach over the outlook for the property market.
In Vietnam, whilst the economy continues to grow at a robust
pace with inflation remaining in check, the anti-China protests in
June 2018, sparked by designation of special economic zones with
long land leases, has created renewed uncertainties among Chinese
investors looking to invest in Vietnam.
On 6 April 2018, the Board of Directors announced proposals
regarding the future of the Company which outlined the expected
disposal schedule for the Company's remaining assets. Given the
current market conditions and progress made by the Development
Manager since then, the expected disposal schedule is revised as
follows:
Name of asset Expected Revised
Disposal Disposal
Date Date
SENI Mont' Kiara (2 units) Q2 2018 Q3 2018
City International Hospital Q2 2018 Q4 2018
Seafront Resort and Residential Development, Q2 2018 Q4 2018
Kota Kinabalu, Sabah
Harbour Mall Sandakan Q4 2018 Unchanged
International Healthcare Park Q2 2019 Unchanged
The RuMa Hotel Q4 2019 Unchanged
The RuMa Residences Q4 2019 Unchanged
Four Points by Sheraton Sandakan Hotel Q1 2020 Unchanged
On 26 June 2018, the Manager has entered into an agreement to
dispose of a plot of land at International Healthcare Park (Lot
PT2, Vietnam) for a consideration of VND150.0 billion (approx.
US$6.6 million). The completion of this transaction is subject to
regulatory approval being obtained from local authorities.
Additionally, during this period, Aseana sold two penthouse units
and a plaza unit at the SENI Mont' Kiara for a total consideration
of approximately US$3.8 million. Construction of The RuMa Hotel and
Residences, Kuala Lumpur is progressing and handover of the hotel
suites and residences to their purchasers will take place during Q3
2018. Improvements in the performance of the City International
Hospital during the first five months of the year can be attributed
to the new angiographic facility and higher productivity of key
service lines. While discussions are still on-going over the sale
of the City International Hospital and Seafront Resort and
Residential Development, Kota Kinabalu, the Company has revised the
disposal timeline to Q4 2018.
On the City International Hospital, the Development Manager has
been in discussion with a China-based healthcare group since
December 2017. A letter of offer has been received in April 2018
and preliminary due diligence and discussions on initial terms has
commenced with this group. However, progress of these discussions
have been protracted and will be dependent upon among others on
regulatory approvals and financing availability for the potential
buyer. In the meantime, the Development Manager has broadened its
discussions with other potential buyers including an Asian-based
healthcare group and a Vietnam-based healthcare investor.
On the Seafront Resort and Residential Development, the
Development Manager is still continuing its discussion with a
China-based buyer, which commenced in October 2017. Discussions
have however been delayed due to changes to the geopolitical
situation in Malaysia. Meanwhile, the Development Manager has
initiated preliminary discussion with another potential buyer.
The Development Manager is continuing to use its best effort to
dispose of the other remaining assets of the Company within the
schedule outlined above, with the target prices for these asset
sales being at or around the published RNAV levels.
Further announcements will be made as soon as there is more
clarity on the progress and timing of these disposals.
Separately, the Company announces that all resolutions were duly
passed at its Annual General Meeting held on 2 July 2018. Further
information on the resolutions and votes total report is available
on the Company's website at the following links:
http://www.aseanaproperties.com/documents.htm and
http://www.aseanaproperties.com/voting-reports.htm
respectively.
Copies of the resolutions (other than those concerning ordinary
business) have been forwarded to the UK Listing Authority via the
National Storage Mechanism and are available for inspection at
http://www.morningstar.co.uk/uk/nsm.
The Company also confirms that following the AGM, and as set out
in the shareholder circular published on 6 April 2018, David
Harris, John Lynton Jones and Christopher Lovell have stepped down
from the Board with immediate effect so as to reduce the Company's
ongoing costs and bring the size of the Board in line with the
objectives of the realisation process.
Subsequent to the changes to the Board, the Company also
approved the following changes to the Board Committees, with
immediate effect:
Audit Committee Gerald Ong Chong Keng (Chairman),
Mohammed Azlan Hashim and Nicholas
John Paris
Remuneration Committee To be merged with the following composition:
and Nomination Committee Gerald Ong Chong Keng (Chairman),
Mohammed Azlan Hashim and Nicholas
John Paris
Management Engagement Committee Dissolved with the Board assuming
all delegated responsibility
For further information:
Aseana Properties Limited Tel: +603 6411 6388
Chan Chee Kian Email: cheekian.chan@ireka.com.my
N+1 Singer Tel: 020 7496 3000
James Maxwell / Liz Yong (Corporate Finance)
Sam Greatrex (Sales)
Tavistock Tel: 020 7920 3150
Jeremy Carey / James Verstringhe Email: jeremy.carey@tavistock.co.uk
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 51 years of experience in construction
and property development. IDM is responsible for the day-to-day
management of Aseana's property portfolio and the divestment of
existing properties.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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