ARCHIVE DATE EXTRACTS SOURCE Investing in Asia Investing in Asia is not always straightforward for European investors. The language barriers, cultural differences and diverse regulatory environments are just some of the hurdles they may come up against. Learning to adapt is therefore crucial, as is investing time and effort in building relationships. A key element for success can be to team up with a local partner that knows the market. It is important to choose the right one, however. Asia's complex regulatory environment is also something European investors must contend with. "There are a lot of regulations of which only local partners will be aware and can navigate through,'' says Voon Hon Lai, Aseana Properties' Chief Executive and president. "I would encourage investors to work with a local partner, unless they were buying a completed building, for example." Asia: the case for investment Asia's growth story offers abundant opportunities for European investors, the region having bounced back more quickly than economies that were directly exposed to the global financial crisis. Unlike Europe and the US, most of Asia Pacific has gone through a demand-driven recession and is now entering a phase of expansion. Voon Hon Lai, chief executive and president of London Stock Exchange-listed Aseana Properties, identifies Malaysia and Vietnam – the emerging markets in which the developer operates – as "good medium to long-term investment plays for foreign investors". Malaysia tends to attract a diverse investor base because of its transparent legal system, which is based on English law. Although European and US investors have predominantly focused on the more mature markets of Japan and Korea, Vietnam has also drawn interest of US, Dutch and German funds, Hon Lai say. Another key factor that makes certain Asian markets attractive to European investor is their liquidity. "Most of the banks here are still fairly strong, relative to lenders in Europe and the US, so it is possible to tap into funds to invest in property," says Hon Lai Malaysian project boosts Aseana Asian property developer Aseana Properties (ASPL) has unveiled an interim turnaround, thanks to a condominium project in Malaysia. The fully-listed group swung into the black with profits of $6.9 million (£ 4.3 million) in the six months to June, against a loss of $13.3 million, on revenue that soared from $2.35 million to $189.7 million because of the completion of phase 1 of its residential project, the SENI Mont' Kiara luxury condominiums in the Malaysian capital, Kuala Lumpur, with 283 units sold to date. The company operates in both Malaysia and Vietnam and describes Malaysia as experiencing 4 per cent growth in the second quarter of the year, driven by both internal demand and 'strong exports of commodities and resource-based products.' Aseana notes that Vietnam's economy as a whole grew by 5.67 per cent over the same period, though inflation was high, with the Consumer Price Index rising at 16.89 per cent a year. The company is hoping to benefit from Malaysia's plans to sell residential land to foreigners, with predominantly a wealthy Chinese crowd taking advantage of the opportunities so far. The global property market has been rocked of late by the ongoing financial crisis, but by regional standards Malaysia is a relatively safe place to invest in property. However. Vietnam is a more turbulent market, with inflation surging. Aseana Properties swings into the black Aseana Properties swung into the black in the six months to the end of June with a net profit of $6.89m compared with a loss of $13.34m last time. Revenues jumped to $189.67m from $2.35m - mainly due to the completion of phase one of SENI Mont' Kiara project. Chairman Mohammed Azlan Hashim said: "We are delighted to announce a profit for the first half for Aseana, on the back of the completion of SENI Mont' Kiara Phase 1. SENI Mont' Kiara is currently the largest asset in our portfolio and with the completion of Phase 2, it is expected to continue to contribute positively to Aseana in the future." Aseana Properties: 3-Mos Pretax Loss Narrows To $2.54M Vs $4.44M Aseana Properties Ltd, a property developer investing in Malaysia and Vietnam, said Thursday that it posted a pretax loss of $2.54 million for the three months ended March 31, compared with $4.44 million a year earlier. Aseana Properties terminates Vietnam fund deal Developer Aseana Properties Ltd revealed this week that it is "disappointed" to have "mutually agreed" with Prudential Property Investment Management Singapore (PRUPIM Singapore) to "terminate" its "conditional agreement to sell 49% of the wholly-owned subsidiary ASPL PV Limited to the PRUPIM Vietnam Property Fund, which is managed by PRUPIM Singapore" after a row over delays on the US $120 million Tan Thuan Dong residential development. Aseana partnering Nam Long in Vietnam development Aseana Properties has entered into a conditional agreement with Nam Long Investment Corporation to develop a residential project in Ho Chi Minh City. Completion of the agreement is conditional upon the award of an investment licence to the joint venture company which will be formed between Aseana and Nam Long, and the transfer of the land use rights certificates for the development land to the joint venture company from Nam Long. On completion, Aseana will own a 55% stake in the joint venture company through an equity investment of $7.92m. Aseana owns a strategic minority stake of 16.4% in Nam Long, acquired in July 2008. Aseana Properties posts pre-tax loss of $15.4m Aseana Properties posts a net pre-tax loss of $15.4m for the year to the end of December compared with a profit of $4.3m last time. Aseana upbeat on Malaysia Asian developer Aseana Properties (ASPL) has unveiled full-year results in which it enthuses about the prospects of the Malaysian economy. Aseana Properties Withdraws From Mont' Kiara Acquisition Aseana Properties Limited, a property developer investing in Malaysia and Vietnam, announced Wednesday that it has decided that it will not proceed with the purchase of the development land in Mont' Kiara, Kuala Lumpur, Malaysia, due to uncertainty in the timing of completion of the Acquisition. Aseana withdraws from Malaysia land deal Aseana Properties has decided not to purchase development land in Mont' Kiara, Kuala Lumpur, Malaysia.
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October 2011
AsiaProperty: Europe Meets Asia
October 2011
AsiaProperty: Europe Meets Asia
24 August 2011
Growth Company Investor
24 August 2011
StockMarketWire.com
19 May 2011
MAIN FACTS:
Dow Jones
5 May 2011
Aseana signed the conditional agreement with the PRUPIM Vietnam Property Fund on 24 August 2010. The developer specialises in projects based in Vietnam and Malaysia.
It is understood that PRUPIM Vietnam Property Fund's decision to terminate the agreement occurred following unforeseen delays in fulfilling the conditions of the agreement … including a transfer of the land use rights certificate for the development land, and the authorities' approval for an investment license.
The plan is to build an upmarket residential development in the Tan Thuan Dong area, District 7 of Ho Chi Minh City, Vietnam. Aseana owns 80% of the project via a joint venture with the Nam Long Investment Corporation and has invested US $9.6 million so far in the JV.
The 20,158 sq m scheme is located in a prime suburban residential area overlooking the Phu My bridge on the Saigon River. Two residential towers will be built with a gross development value of approximately US$120 million. Preliminary site preparation work has commenced.
Overseas Property Professional
26 April 2011
Stock Market Wire
20 April 2011
Aseana - a property developer in Malaysia and Vietnam - said the latest figures included losses from the disposal of 1 Mont' Kiara retail mall and office tower of $6.7m (2009: nil) and marketing expenses of $10.0m (2009: $4.8m).
Group revenue increased by 55.6% to $179.3m which was mainly attributed to the recognition of $166.3m revenue upon completion of 1 Mont' Kiara and sale of completed properties of $12.4m.
Chairman Mohammed Azlan Hashim said: "The sale of 1 Mont' Kiara retail mall and office tower is in line with our current strategy to bring capital back to the group.
"We are looking forward to the completion of SENI Mont' Kiara this year which will further strengthen our financial position.
"On the Vietnam front, we are excited that the group has started on the construction of the private tertiary care hospital at the International Hi-Tech Healthcare Park in Ho Chi Minh City.
Money AM (Feed)
20 April 2011
The fully-listed group lost $15.4 million (2009: profit of $4.3 million) in 2010 arising from the disposal of its 1 Mont' Kiara development ($6.7 million) and marketing expenses of $10 million. Aseana enthuses that business activity in 2010 was 'spurred' in Malaysia by the introduction of the Economic Transformation Programme (ETP), a government effort to raise gross national income over nine years by encouraging several private investment programmes.
Turnover rose 55.6 per cent to $179.3 million, reflecting the completion of the 1 Mont' Kiara development and the sale of properties worth a total of $12.4 million. Chee Kian Chan, director of strategy at Aseana's development manager Ireka Development Management, is keen to draw attention to the company's efforts on its luxury housing development SENI Mont' Kiara, adding that the Malaysian government's ETP programme is likely to boost Aseana's prospects in the country. He also highlights plans for the development of the 'International Hi-tech healthcare park' in Ho Chi Minh City in Vietnam as key to its further growth.
Currently trading at a paltry 53 cents (32p), Aseana offers exposure to the nascent Malaysian and Vietnamese property markets. These are areas of particular interest to investors at the moment due to Malaysian efforts to encourage foreigners to buy property in the country. However Vietnam is experiencing a number of challenges at the moment with inflationary pressures and issues around its devaluing local currency with investor confidence not looking as strong.
Growth Company Investor (Web)
12 January 2011
MAIN FACTS:
-Further to its announcement dated August 13, 2007, Aseana was to acquire, for CNY10.8 million ($3.13 million), 4,000 square foot of development land from United Time Development Sdn. Bhd. or UTD, a wholly owned subsidiary of Ireka Engineering & Construction Sdn. Bhd., a company in the same group as Aseana's development manager.
-UTD had entered into a Sales and Purchase Agreement or SPA with a third party to acquire the land on behalf of Aseana shortly before its London Stock Exchange listing.
-Following Aseana's decision not to proceed with the Acquisition, UTD may decide to proceed with the development of the project upon receipt of the above approvals and completion of the SPA.
Dow Jones
12 January 2011
It says this is due to uncertainty over the timing of completion of the deal.
The company has decided to reallocate the funds set aside for this project into its existing projects.
Aseana was to acquire approximately 54,000 sq ft of development land from United Time Development, a wholly-owned subsidiary of Ireka Engineering & Construction, a company in the same group as Aseana's development manager.
The acquisition - for RM10.8m - was conditional on receipt of the necessary approvals from the relevant authorities including a development order from the City Hall of Kuala Lumpur, which to date has not been obtained.
Money AM (Feed)
