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 Disposal Date |
Revised Disposal Date |
SENI Mont' Kiara (2 units) |
Q2 2018 |
Q3 2018 |
City International Hospital |
Q2 2018 |
Q4 2018 |
Seafront Resort and Residential Development, Kota Kinabalu, Sabah |
Q2 2018 |
Q4 2018 |
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 and Nomination Committee |
To be merged with the following composition: 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: [email protected] |
|
|
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: [email protected] |
|
|
|
|
|
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.
