ARCHIVE DATE EXTRACTS SOURCE Aseana Properties NAV/Share $0.943 at Sept. 30 Aseana Properties Limited (ASPL.LN), a property developer in Malaysia and Vietnam, Tuesday said its net asset value at Sept. 30 amounted to $0.943 per share, compared with $0.939 per share at June 30. Aseana in the red as revenues fall Malaysia and Vietnam property developer Aseana Properties reports an unaudited loss before tax of $3.83m for the nine months to the end of September. Aseana return of capital plans shelved Plans by Aseana Properties for a return of capital have been put on hold as it has not achieved the level of sales at SENI Mont' Kiara that had been expected earlier in the year. Aseana opens mall and hotel at Sandakan Harbour Square Aseana Properties Limited has completed Sandakan Harbour Square and is officially opening of the Harbour Mall Sandakan and the Four Points by Sheraton Sandakan hotel, Sabah, Malaysia. Aseana opens mall and hotel at Sandakan Harbour Square Aseana Properties has announced the completion of Sandakan Harbour Square and the official opening of the Harbour Mall Sandakan and the Four Points by Sheraton Sandakan hotel in Sabah, Malaysia. The 12-acre Sandakan Harbour Square is an award-winning urban renewal project with a gross development value of approximately US$170m. Aseana completed construction of Sandakan Harbour Square in the first quarter together with joint venture partner Sandakan Municipal Council. Alongside the hotel and mall, the development comprises a central market (market and fish jetty), town square and waterfront esplanade as well as commercial shop offices. The new 300-bed hotel is managed by Starwood Hotels & Resorts under the 'Four Points by Sheraton' brand. With stunning views of the Sulu Sea, the hotel offers state-of-the-art convention, meeting and banqueting facilities - the largest in the city. The hotel also offers a range of quality food and beverage outlets, a gym and an outdoor "infinity-edge" swimming pool on the 13th floor overlooking the scenic Sandakan Bay. Harbour Mall Sandakan, the integrated retail hub, incorporates 200,000 sq ft of retail space across five storeys, a 11,000 sq ft food court and 6,000 sq ft entertainment and games centre, with 978 covered parking bays. The Case for Vietnam: Vietnam Has a Tough Real Estate Market, but a Turnaround Is Expected In light of the economic turmoil that Vietnam has gone through — and continues to go through — the question remains: Is Vietnam the right destination for investing in real estate? Why invest in Vietnam’s real estate? With interest rates falling, signs that inflation is stabilizing, and the economy in general beginning to look more positive, the property market is starting to attract more interest following a particularly difficult few years. According to Knight Frank, demand, which has risen dramatically during the past few months and is expected to carry on growing in the next few months, comes from both local and international investors; and for good reason. With its young, growing population, rising incomes, increasing GDP and more foreign investment, Vietnam has a number of qualities that should make it attractive to investors. The recent correction in real estate prices has made investments in the sector all the more attractive. With approximately 87 million people, Vietnam currently has the third largest population in Southeast Asia. Of this, 67 percent is under the age of 35 and around 70 percent still live in rural areas. The improving economy is expected to fuel the ever increasing middle class and rural-to-urban migration at an exponential rate, which will, in time, stoke the rising demand for residential housing. Family wealth has increased during the past few years and is often heavily concentrated in residential homeownership, with 93 percent of families owning property. It is this demand for residential housing that has led to a number of new residential projects surfacing. Although the government has so far taken a measured approach toward property and land ownership due to the scarcity of land, there have been significant improvements and clarifications to its Land Laws since land leases were first introduced in 1993. Ownership of real estate is granted through “rights of use” by the government. Locals are often granted perpetual rights of use while foreign investors are limited to rights of use lasting for 50 years. For projects deemed to be socially and nationally important, however, foreign investors are, in some cases, given up to 70 years rights of use. Property ownership also has recently become possible for foreigners with long term work permits or overseas Vietnamese, estimated at approximately 4 million, who are living mainly in the United States, Europe, Australia and parts of Asia. Many of them have retained strong ties with their homeland and return to Vietnam as entrepreneurs and professionals. Another factor driving the real estate market is foreign direct investment (FDI). Since its accession to the World Trade Organization in early 2007, the rate of FDI pouring into the country has accelerated, with overseas companies attracted by Vietnam’s large, young and highly literate workforce. Vietnam has been a favored FDI destination for a number of years, with investors targeting sectors ranging from electronics to the garment and textile industries, which sees roughly US$12 billion exported annually for international brands such as Nike, Adidas and Abercrombie & Fitch. Within the real estate sector, FDI inflow started to regain momentum in first quarter 2012 following a period of decline. Of the total registered capital in the first three months, real estate accounted for 45.5 percent. This surge in foreign investment is largely attributed to the US$1.2 billion Binh Duong Garden, a new urban city project on the outskirts of Ho Chi Minh City. By the end of March 2012, there had been 120 new projects licensed nationwide worth US$2.26 billion. On the whole, investors looking to invest in Vietnam real estate remain cautious, although we have seen a few dipped a toe in the market. This is evident from the increase launches of small developments in recent months. Practical Investing Advice When it comes to investing in Vietnam’s real estate, there are a number of key factors worth being aware of, namely timing, location and an understanding of the market. There is an overriding need to be flexible and adaptable in your investment strategy, particularly when considering the location of your investment. With much of the prime land usually attractive to investors situated in Vietnam’s extremely dense and compact cities, there is often a requirement to relocate or resettle the existing occupants. This can make the process of land acquisition uncertain and unwieldy, although strong sites outside of the busy city centers tend not to be subject to such complexities. This should not be viewed as a detracting factor but rather an invitation to take a more flexible approach, which may include looking at sites outside of the busy city centers. The ability to form strong relationships with local business partners is also essential. When venturing into a foreign country, having an understanding of the local market and the way in which business is conducted is a must for success, particularly when the business language is not your native tongue. While there are sufficient English speaking consultants, advisers or lawyers, most business and all liaisons with the authorities are conducted in Vietnamese. Having a good and trustworthy business partner by your side could make all the difference. At Aseana Properties, we remain steadfast on our investments in Ho Chi Minh City. Cautious of the “boom and bust” cycle of the economy in 2007, we have taken a measured and slightly unconventional approach by investing in a local private real estate developer as well as being the master developer of a healthcare park. In 2008, Aseana Properties took a significant minority stake in Nam Long Investment Corp., a property developer recognized as a market leader in affordable housing and owners of one the largest land banks in Southern Vietnam. The company’s early partnership with Nam Long has now yielded a more conventional real estate project, which we are currently positioning for a launch in the later part of this year, with riverfront villas and apartments in District 9. The International Hi-tech Healthcare Park was Aseana Properties’ other key investment in 2008. Comprising 37 hectares of unencumbered land in Binh Tan District, the site will be developed into a premier integrated healthcare park. Aseana Properties is currently aiming for a completion of its maiden flagship project, City International Hospital (CIH), a 320-bed private hospital in the park, by the end of 2012, with a scheduled opening in first quarter 2013. CIH will be managed by Parkway-Health, Asia’s largest private healthcare group, and will be only one of three international standard private hospitals in the bustling metropolis of Ho Chi Minh City. Future phases of the park include residences, shopping mall, schools and other specialist healthcare facilities. Outlook To those not familiar with Vietnam, the outlook may still appear a little bleak, but with the right approach, tools and local know-how, we believe the investment environment at present looks particularly attractive, offering investors potentially huge upside during the medium to long term. The time to invest in Vietnam’s real estate is now. What's in store today... Next up will be Aseana Properties (ASPL) with its full-year results. Aseana swings into profit as revenues rise by over 56% Malaysia and Vietnam property developer Aseana Properties swung into the black in the year to the end of December with net pre-tax profits of $33.1m against a net loss of $15.4m last time. Small caps round-up Aseana Properties, a Malaysia and Vietnam-based property developer, has posted a 56.8% leap in revenues from $179.3m to $281.1m for the year ended December 31st, helping to turn a loss of $15.4m in 2010 to a profit of $33.1m in 2011. October 2011 saw the completion of SENI Mont' Kiara, the group's largest and most significant project, which along with the sale of several completed properties led to a significant increase in earnings. Aseana Properties NAV Up At $0.957 Aseana Properties Limited (ASP.LN), a property developer in Malaysia and Vietnam, said Wednesday its NAV per share at Dec. 31 2011 was $0.957 and said it expects three projects to start in the second half of 2012. Eyes wide open: Vietnam Government reforms are beginning to reshape the country into a land of opportunity – for the careful investor When investing in an emerging market, an investor must weigh up the risks against the potentially huge gains that timely investment can deliver. Knowing what drives these markets and selecting strong local partners who understand the culture and the legal system will often be the difference between success and failure.
Press Coverage
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20 November 2012
MAIN FACTS:
-Realisable net asset value (RNAV) $1.268 per share at Sept. 30, compared with $1.215 per share as at June 30.
-Pretax loss for the nine month period ended Sept. 30 amounted to 3.8 million dollars, compared with profit of $19.8 million in the year ago period.
-Revenue $26.1 million versus $192.3 million.
-Total comprehensive expense $2.6 million versus income of $7.2 million.
-Cash and cash equivalent stood at $17.4 million at Sept. 30, compared with $19.6 million at June 30.
-Sales of SENI Mont' Kiara have been affected by further tightening of credit for high-end condominium market.
Dow Jones
20 November 2012
The group says revenues fell to $26.14m in the period - down from $192.25m last time.
The group says Harbour Mall Sandakan (phase 3) and Four Points by Sheraton Sandakan hotel (phase 4) officially opened after successfully obtaining full occupational certificate for both on 17 October.
The Daily Telegraph (Web)
20 November 2012
As a consequence, the board believes it will not now be in a position to proceed with the proposal. When the board announced the Proposal, its overall intention was to return capital to shareholders, look to reduce the discount at which the company's shares trade compared to its net asset value and provide an on-going strategy for the company.
However, the company will need to achieve the necessary level of sales and a broad level of support amongst its shareholders for any proposals that it puts forward.
The board and its advisers will continue to see if they can develop proposals that will command broad support.
StockMarketWire
26 October 2012
The 12-acre Sandakan Harbour Square is an award-winning urban renewal project with a gross development value (GDV) of approximately US $170 million. Aseana completed construction of Sandakan Harbour Square in Q1 2012, together with joint venture partner Sandakan Municipal Council. Alongside the hotel and mall, the development comprises a central market (market and fish jetty), town square and waterfront esplanade as well as commercial shop offices.
The new 300-bed hotel is managed by Starwood Hotels & Resorts under the "Four Points by Sheraton" brand. With stunning views of the Sulu Sea, the hotel offers state-of-the-art convention, meeting and banqueting facilities - the largest in the city. The hotel also offers a range of quality food and beverage outlets, a gym and an outdoor "infinity-edge" swimming pool on the 13th floor overlooking the scenic Sandakan Bay.
Harbour Mall Sandakan, the integrated retail hub, incorporates 200,000 sq ft of retail space across 5storeys, a 11,000 sq ft food court and 6,000 sq ft entertainment and games centre, with 978 covered parking bays. It is Sandakan city's only air-conditioned modern lifestyle mall with hotel accommodation, shopping, convention centre, dining and entertainment all under one roof.
In 2009, the development received an award at the Asia Pacific Property Awards in the commercial redevelopment category.
Dato' Mohammed Azlan Hashim, Chairman of Aseana said: "Aseana and Ireka (the development manager), are delighted to be officially opening Harbour Mall Sandakan and the Four Points by Sheraton Sandakan. The new shopping mall, together with Sandakan's only international brand hotel, complement the city's reputation as a famous ecotourism destination, providing quality shopping, dining, entertainment and accommodation facilities.
Aseana and Ireka are very proud to have realised our ambitions for Sandakan: bringing modern lifestyle, social rejuvenation and a tourism boost to the city. With the launch of Harbour Mall and the Four Points by Sheraton Sandakan, we believe that Sandakan Harbour Square has secured its position as the city's bustling commercial hub."
The official opening of the mall and hotel was attended by Sabah Chief Minister, Rt. Hon. Datuk Seri Panglima Musa Aman who commented: "Having witnessed the birth of this project in 2003, I can testify that Sandakan city centre has been transformed from a sleepy backwater to the modern, vibrant city it is now.
Sandakan Harbour Square scheme is a great example of private-government joint partnership. This iconic landmark has rejuvenated Sandakan into a thriving commercial hub, complementing this famous ecotourism destination with international class accommodation and shopping facilities. We must not also forget the abundant employment and business opportunities Sandakan Harbour Square brings to Sandakan."
The project is managed by Ireka Development Management Sdn Bhd (a subsidiary of Ireka Corporation Berhad).
MuchImmo.com
24 October 2012
StockMarketWire.com
September 2012
By Chan Chee Kian
The Institutional Real Estate Letter - Asia Pacific
25 April 2012
Two of the company's residential developments in Ho Chi Minh City, Vietnam - the Phuoc Long B Project and the Tan Thuan Dong project - received licences in the fourth quarter of 2011. Construction is expected to commence in the second and fourth quarter of 2012 respectively.
The company raised $162 million in the third quarter last year through a 10-year guaranteed medium-term note issue in Malaysia, the proceeds of which will be used to refinance construction work at Sandakan Harbour in Malaysia, and to part finance the acquisition of the Aloft Kuala Lumpur Sentral hotel.
Mark Hughes, analyst at Panmure Gordon, admits that real-estate market conditions in Aseana's territories of Malaysia and Vietnam are challenging. However, he insists there is a steady flow of demand activity in the company's divisional segments.
He has a 'buy' recommendation on Aseana, stressing that this is a company that is managing a high quality portfolio of assets, showing encouraging progress both in construction and sales
Interactive Investor
25 April 2012
Revenues increased by 56.8% to $281.1m mainly due to the completion of the SENI Mont' Kiara project in Kuala Lumpur ($274.9m) and the sale of completed properties ($5.8m).
Chairman Mohammed Azlan Hashim said: "We look forward to the completion of the Harbour Mall Sandakan and Four Points by Sheraton Sandakan hotel (both situated in Sandakan Harbour Square); as well as the office towers and Aloft Kuala Lumpur Sentral hotel, all situated in Malaysia.
"Over in Vietnam, our maiden project in Vietnam, the 319-bed City International Hospital at the International Hi-Tech Healthcare Park is also expected to be completed by the end of 2012
StockMarketWire.com
25 April 2012
Sharecast
25 April 2012
MAIN FACTS:
-NAV $0.957 at Dec. 31 2011 (2010: U.S.$0.908)
-Revenue for the year ended Dec.31 2011 $281.14 million (2010: $179.35 million)
-Net pretax profit $33.13 million (2010: Loss $15.43 million)
-Despite the uncertainty in the global economy, Malaysia is expected to experience stable, moderate growth in the property sector this year; whilst the Vietnam property market may continue to remain challenging.
-The Company's location-centric focus and tailoring of its products on the back of comprehensive and hands-on market research, provides the Board with the confidence to achieve continued success in 2012.
Dow Jones
March/ April 2012
Investing in Vietnam real estate is no different. In recent months the country has been on the receiving end of its fair share of economic turmoil with high inflation and the weak Vietnamese dong creating significant challenges. Despite these headwinds, there are three fundamental factors driving the real estate industry which, when combined with a well-researched strategy, make a compelling investment case.
The first factor is that Vietnam has the third largest population in South East Asia of approximately 86m people, 67% of whom are under the age of 35. Around 70% of the population live in rural areas, which will fuel rural-to-urban migration at an exponential rate. Added to this, the already burgeoning middle class continues to grow, along with its appetite for consumer goods and property ownership.
Second, the rate of foreign direct investment pouring into the country - which was already high - has accelerated since Vietnam joined the World Trade Organisation (WTO) in early 2007.
Third, since the introduction of land leases in 1993, Vietnam has made rapid improvements to its land law.
In recent years, Vietnam has also opened up property ownership to foreigners with a long-term work permits, as well as for expatriate Vietnamese who left the country at the time of the Vietnam war, a group of around 3.7 million people.
The government has also made significant headway in addressing the country's economic problems.
Once a foreign investor has decided to venture into Vietnam, it is crucial to maintain a flexible approach to land selection and acquisition.
The ability to form strong relationships with local business partners is also an essential ingredient of success, not least because the business language is Vietnamese - all liaisons with the various government authorities is conducted in Vietnamese.
Finally, understanding Vietnam's legal system is critical.
In conclusion, providing investors enter Vietnam with their eyes wide open, engage with strong local partners and select suitable development sites, the fundamentals driving the real estate sector should ensure a positive long term outcome.
IP Real Estate
