TIDMASPL
RNS Number : 9492J
Aseana Properties Limited
03 July 2017
Aseana Properties Limited
("Aseana" or the "Company")
Progress update on the divestment of the portfolio
and
Result of AGM
Aseana Properties Limited (LSE: ASPL), a property developer in
both Malaysia and Vietnam which is listed on the Main Market of the
London Stock Exchange, announces an update on the divestment of the
Company's assets which commenced following a Shareholder vote on
22(nd) June 2015.
Since that date, the Board of Directors has been actively
engaged with the Company's Development Manager in a process of
orderly disposal of the Company's assets with the aim of completing
that process by June 2018. The Directors have previously
highlighted the difficult property market conditions prevailing in
both Malaysia and Vietnam which affected the speed at which assets
have been disposed of and which led them to the decision to use
most of the proceeds from asset sales for the reduction of project
related debts within the portfolio. During this period Aseana has
sold assets for a total consideration of US$187.3m and project debt
has fallen from the peak of US$229.4m as at 31 December 2013 to
US$81.8m as at 31(st) March 2017. The cash held by the Group on 31
March 2017 was US$18.4m.
Assets that have been sold during this period are as
follows:
1. Units at Tiffani and Seni Mont' Kiara for a total cash consideration of US$15.7m;
2. The Company's entire stake in The Waterside Estates
residential project, Ho Chi Minh City, Vietnam was sold on 24(th)
September 2015 for a total cash consideration of US$9.29m;
3. The Company's entire stake in The Aloft Kuala Lumpur Sentral
Hotel, Malaysia was sold on 23(rd) June 2016 for a gross
transaction value of RM418.7 million (approx. US$104.2
million);
4. The Company's entire stake in Nam Long Investment
Corporation, a residential property developer listed on the Ho Chi
Minh Stock Exchange was sold in tranches between June 2015 and
November 2016, for a total consideration of US$15.2m; and
5. Seven land plots at the International Hi-Tech Healthcare Park
in Binh Tan district in Ho Chi Minh for a total consideration of
US$42.9m. The Company owns 72.3% of this Park.
Throughout this period, construction of the RuMa Hotel and
Residences located in Kuala Lumpur, which is 70% owned by the
Company and which is the only asset in the Company still under
construction, has been progressing well. Construction work on this
forty floor building is now nearing completion and the handover of
both the residential apartments to their purchasers and the luxury
253 suite hotel, which is to be managed by the Urban Resorts
Concept Group based in Hongkong, is expected to commence during Q1
2018. The costs of construction of RuMa have largely been financed
by pre-sales of the residences and hotel suites, 55.1% of which
have been sold so far.
The Directors believe that significant progress has also been
made at both readying the remaining assets for sale, including
reducing the operating losses at the City International Hospital in
Ho Chi Minh City and the Harbour Mall Sandakan and Fours Points
Sheraton Sandakan Hotel in Sandakan, East Malaysia, and marketing
the assets to prospective buyers. The Directors note that property
market and economic conditions have been improving recently in both
countries, although there remain challenges in sectors of the
market that the Company is invested in. The Development Manager is
continuing to use their best efforts to dispose of all the
remaining assets of the Company by June 2018. However, if it
becomes likely that the Company will not be able to meet this
stated target, a separate announcement will be made by the Company
by Q1 2018 in respect of its plans beyond June 2018.
In January 2017, the Company distributed US$10.0m to
Shareholders via a tender offer to buyback 6.29% of the then
outstanding shares at a price of US$0.75 per Share. The Directors
intend to make further returns of capital as soon as possible
following the completion of further asset disposals and the pay
back of outstanding project debts. Further announcements will be
made as soon as there is further clarity on the progress and
timeline of these disposals.
As a result of the asset sales highlighted above, associated
debt repayments and changes to the valuations of remaining assets,
the Company's Net Assets and Realisable Net Assets as at 31st March
2017 were US$132.2m and US$178.8m respectively.
During the divestment period, the Directors have been reducing
the costs of operating the Company wherever possible, and will
continue to do so. In this regard, the Directors have resolved to
reduce the costs of the Board by reducing the Directors fees by 25%
with immediate effect for the period of July 2017 to June 2018.
In addition, in order to get the Company ready for the
discontinuation vote that is to be proposed to Shareholders at the
AGM that will be held in June 2018, the Company and the Development
Manager have agreed to reduce the notice period for termination of
the Management Agreement from 12 months to 3 months with immediate
effect (the "Amendment").
As a company whose shares are listed on the standard listing
segment of the Official List of the UKLA, the Listing Rules
applicable to closed-ended investment companies which are listed on
the premium listing segment of the Official List of the UKLA do not
apply to the Company. However, as set out in the Company's
prospectus dated 29 March 2007, the Company has adopted a related
party policy which applies to any transaction which it may enter
into with the Development Manager or any of its affiliates which
would constitute a "related party transaction" as defined in, and
to which would apply, Chapter 11 of the Listing Rules. In
accordance with its related party policy, the Company's independent
directors, being Mohammed Azlan Hashim, Christopher Henry Lovell,
David Harris, John Lynton Jones and Gerald Ong ("Independent
Directors"), having consulted with the Company's financial adviser,
Nplus1 Singer Advisory LLP, consider that the terms of the
Amendment are fair and reasonable insofar as the Company's
shareholders are concerned, and accordingly the Independent
Directors have approved the Amendment.
Separately, the Company announces that all resolutions were duly
passed at its Annual General Meeting held on 3 July 2017. 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.
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 Communications 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 50 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 company news service from the London Stock Exchange
END
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