Re Joint Venture

RNS Number:8694L
SGL Vietnam Development Limited
16 January 2008



16 January 2008



SGL Vietnam Development Limited (the "Company")



Joint Venture agreement for investment in Ho Chi Minh City



SGL Vietnam Development Limited (AIM:SGLV), a company established to engage in
property investment and development primarily in Vietnam, is pleased to announce
that is has entered into a Joint Venture agreement with a local partner, Dung
Thanh Manufacturing, Construction & Trading Co., Ltd. (the "JV Partner"), for
the development of residential and commercial property in the Thu Duc district
of Ho Chi Minh City ("HCMC"). Under the terms of the agreement, the Company will
have an 80% equity share in the JV company incorporated to develop the project.



The Company will initially invest approximately US$3 million in cash in order to
secure the Land Use Right and to cover the initial land cost. The Directors
expect that the total gross development cost for the project will eventually be
approximately US$20.3 million, funded c.20 per cent. through equity and c.80 per
cent. through debt. The Company expects to secure a construction permit and
initiate pre-launch sales in 1H 2008.



The development will comprise two blocks of freehold residential apartments,
located in the northern Thu Duc District, bordering Binh Duong province, 10 km
from HCMC's downtown CBD and 10 km from the Tan San Nhat international airport,
with close local transport links. The mid-range development will be targeted at
middle income local and overseas Vietnamese. The site has been cleared and the
Company's JV Partner has secured a Land Use Right. The development is in close
proximity to numerous industrial parks which is expected to create additional
demand for the project when it is completed.



Susan Sim, Director of the Company, said "This first investment will give SGL
Vietnam immediate penetration into the high growth residential sector in HCMC.
The investment is also in line with our overall investment strategy to invest in
good quality residential development for sale in the two key gateway cities of
HCMC and Hanoi."



Enquiries:



SGL Vietnam Development Limited
Susan Sim                                                        [phone]



Collins Stewart
Adrian Hadden, Stewart Wallace                               [phone]







Background



Vietnam*, with a population of over 85 million, is the second fastest growing
economy in Asia, behind only China, with a GDP growth rate of approximately 8.2%
in 2006 and with GDP per capita, measured in 1994 prices, increasing by over 43%
from 2000 to 2006.

*Asian Development Bank www.adb.org



Vietnam's sound fundamentals have established a sustained track record of
economic growth in excess of 7% over the last 5 years. Following Vietnam's
accession to the World Trade Organisation, the Asian Development Bank expects
this robust economic growth to continue and has forecast GDP growth of 8% in
2008. Property consultant CBRE VN believes that the expansion of development
activity in Vietnam is being driven by the strongly performing economy, a
growing population and a government eager to move to a free market.



SGL has developed strong relations in Vietnam itself and has relevant real
estate and Vietnam experience. It has significant local knowledge through its
advisors. For example, the Company has appointed The Construction Joint Stock
Company No. 1 ('COFICO' or the 'Development Adviser'), a state-controlled
enterprise and one of the largest construction companies in southern Vietnam, as
its development adviser to provide assistance and advisory services on property
development opportunities including research, consultancy and project
management.



SGL Capital, the Company's investment manager, is led by Mr. Ching Wah
('George') Goh, (Chairman) Mr. Kok Cheong ('Larry') Chua, (Deputy Chairman) and
Ms. Susan Sim, (Chief Executive Officer). They have extensive experience in the
international real estate sector in a variety of countries including Vietnam,
Singapore, China, Indonesia and the United Kingdom. Relevant property experience
includes Binh Duong (180,000 sq. m. retail/office/residential development in
Vietnam), Westlake Hotel (the first 5 star hotel in Hanoi), London Point West
(47,000 sq. m. residential/commercial development in South Kensington, London),
the Suria KLCC Mall in the Petronas Towers (Malaysia) and other significant
properties.



SGL Capital's role is to manage the Company's property portfolio, source and
recommend new investment opportunities, provide project management and exit
strategies.



The Company is also supported by an Advisory Panel including Mr. Marc Townsend,
the Managing Director of CB Richard Ellis (Vietnam) Ltd., one of the key
integrated real estate service providers in Vietnam, and Professor Cao Cu Boi,
who has extensive Vietnamese experience from his previous involvement in various
state and private sector initiatives.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

JVEGRGDBLBBGGIL