AEON at International Hi-Tech Healthcare Park

RNS Number : 2114K

Aseana Properties Limited

23 June 2014

 



Aseana Properties Limited

("Aseana")

AEON Group to enter International Hi-Tech Healthcare Park in Ho Chi Minh City, Vietnam

Aseana Properties Limited (LSE: ASPL), a property developer in Malaysia and Vietnam listed on the Main Market of the London Stock Exchange, announces that HLSL 3 Limited Liability Company ("HLSL3"), its 67% owned subsidiary, has entered into an agreement with AEON Vietnam Co., Ltd. ("AEON Vietnam") to develop a retail mall at the International Hi-Tech Healthcare Park ("IHTHP") in Ho Chi Minh City, Vietnam.  AEON Vietnam is a subsidiary of AEON Co., Ltd. based in Japan, one of world's largest retailing groups with over 16,490 stores across Japan and Asia.

The transaction involves the disposal of a 4.7 hectares (11 acre) plot of land at IHTHP and the transfer of the development rights to AEON Vietnam.  On 21 June 2014, AEON Vietnam was awarded the Investment Certificate by the People's Committee of Ho Chi Minh City for the development, which paves the way for the final administrative step of transferring the land and development rights to AEON Vietnam, which is expected to complete by Q4 2014.  AEON Vietnam intends to develop a 74,000 sq m retail mall, which on completion in 2016 will be the focal point of commercial activities for the IHTHP.

The cash consideration received by HLSL3 from this transaction will be used as working capital and to repay bank borrowings at the IHTHP.  The transaction was carried out at Aseana's ascribed market value for the land and upon closing will crystallise approximately 26.7% of Aseana's published Project RNAV of US$32.63 million (as at 31 March 2014).  The transaction is part of Aseana's strategy to realise assets and reduce gearing at the Group level.

In January 2014, Aseana announced the opening of the City International Hospital ("CIH") in IHTHP, one of the largest international standard, private hospitals in Ho Chi Minh City.  The 320-bed hospital, which is rapidly establishing itself as a leading private hospital of choice in the region, provides services in General Medicine, Obstetrics & Gynaecology, Paediatrics, General Surgery, Gastroenterology, Medical Oncology, Orthopaedics, Otorhinolaryngology, Urology, Neurosurgery and Ophthalmology. It is managed by Parkway Pantai Limited, one of Asia's leading private healthcare groups. 

The AEON retail mall is a key element that will bring to life the IHTHP master plan, a mixed-use scheme comprising world-class private hospitals, mixed commercial, hospitality and residential developments on a 37 hectare site. Located in the Binh Tan District, the healthcare park is approximately 11 km from District 1, the central business and commercial district of HCMC.  Aseana has a 67% stake in the IHTHP. The remaining stake is held by Aseana's joint venture partner, Hoa Lam Group, which holds a significant minority stake together with a consortium of investors from Singapore, Malaysia and Vietnam. 

Dato' Mohammed Azlan Hashim, Chairman of Aseana, said: "This investment by AEON in IHTHP is a significant milestone for Aseana's property portfolio in Vietnam.  It brings further impetus and continuity to the master plan for IHTHP following the opening of City International Hospital earlier this year. Together with our partners, we will continue to work towards attracting more international investors to help develop IHTHP into a premier mixed-used scheme in Ho Chi Minh City and Vietnam."

 

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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