Aseana Properties Malaysian Properties For MYR333M, At Net Loss

21st Jul 2010 15:43

LONDON (Dow Jones)--Aseana Properties Limited (ASPL.LN), a property developer investing in Malaysia and Vietnam, said Wednesday it has entered into conditional Sale and Purchase Agreements with wholly owned subsidiaries of ARA Asia Dragon Fund, to realize its investments in a 20-storey office tower block and a five-storey retail mall, inclusive of car parks, at a total consideration of MYR333 million (approx. $104 million). MAIN FACTS: -This transaction is expected to result in net losses of $4 million for Aseana, with the 25% income tax charge for early disposal accounting for the majority of it. -The Properties are two of three components in 1 Mont' Kiara, an integrated mixed development located in the heart of Mont' Kiara, a sought-after residential and commercial address in Kuala Lumpur. -1 Mont' Kiara is being jointly developed by Aseana Properties and MCDF Investment Pte Ltd. MCDF is a private equity fund managed by CapitaLand Financial Limited. -The completion of the SPAs is expected towards the end of 2010 and is conditional upon approval from the relevant authorities and the issuance of a Certificate of Occupation for the development. -The third component of 1 Mont' Kiara is a 34-storey building consisting of 186 office suites, 185 of which have already been sold to individual buyers. -The total gross development value of this component is estimated to be MYR196 million (approx. $61 million). -Following the sale of the Properties, the overall gross development value of the 1 Mont' Kiara development (inclusive of office suites) is estimated to be MYR529 million (approx. $165 million). -Aseana believes that the soft market for new office space in Kuala Lumpur also contributed to the lower selling price. -Shares at 1441 GMT down 0.1 pence, or 0.4%, at 31.2 pence. By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 21, 2010 10:43 ET (14:43 GMT)