NAV $.693 and RNAV is $.915 |
The Company has announced further proposals for a Tender Offer to return USD10,000,500 to shareholders as part of the managed wind down of the company. The Tender Offer will be for up to 13,334,000 shares at a tender price of USD0.75 per Share, equivalent to the net asset value as at 30 September 2016. |
 N+Singer in August;
Aseana Properties (ASPL) is conducting an orderly asset disposal, following the shareholder vote to cease making new
investments. It has recently sold its entire position in Aloft Kuala Lumpur Sentral Hotel for US$104.2m and has utilised the
proceeds to reduce its borrowings, and is currently in negotiations with its lenders to allow a capital distribution.
Aseana Properties is a London listed property development company with assets based in Malaysia and Vietnam,
launched in April 2007; it currently has five assets in Malaysia and a further asset in Vietnam, plus an equity stake in Nam
Long Investment Corporation a listed Vietnamese equity investment.
The below table shows details on these assets:
Figure 1: Portfolio breakdown as at Q2 2016
Project Location
Expected
GDV
Effective
Ownership
Project
NAV
US$
as at
30/6/16
Project
RNAV
US$
as at
30/6/16 Notes
Tiffani by i-ZEN Malaysia US$92m 100% 3.89 3.89 99.7% sold and target to achieve 100% sales
by end of Q4 2016
SENI Mont' Kiara Malaysia US$324m 100% 19.93 21.32 96.7% sold, targeted sales 100% by Q2 2017
Sandakan Harbour Square Malaysia US$116m 100% 31.17 36.07 Planned sale Habour Mall by Q4 2017,
Sherton Hotel by Q2 2016
The Ruma Hotel & Residences
Project
Malaysia US$182m 70% 27.25 41.14 56% sold off plan, construction completion
expected Q3 2017
Seafront Resort & Residential
Development
Malaysia US$14m 100% Hotel
80% Homes
10.01 13.43 Planned sale of development lands by Q4
2016
International Hi-Tech
Healthcare Park
Vietnam US$43m 72.35% 24.52 45.6 Divestment to dispose of hospital and
parcels of land by June 2018
Equity Investment in Nam Long
Inc Corp
Vietnam 3.9% 8.16 8.16
Sub Totals 124.9 169.6
Cash 41.3 41.3
Other Assets
& Liabilities
-1.3 -1.3
Grand Totals 165.0 209.7
Number of shares in issue (m) 212.025 NAV / RNAV 77.8 98.9
Sources: Company data, N+1 Singer estimates
Other than the disposal of Aloft Kuala Lumpur Sentral Hotel, the company has made the following progress:
Harbour Mall Sandakan is now approximately 62% let, following the opening of the cinema located at the mall on
30th July
SENI Mont’ Kiara (SENI) has achieved sales of approx. 97%
RuMa Hotel and Residences has achieved sales of approx.56%
Sheraton Sandakan Hotel has achieved an average occupancy rate of 34.7% for the six month period ended 30th
June
Investment Funds Current price*: ¢0.42 Mkt cap ($m): 90
Aseana Properties | Company Comment
August 2016 2
Aseana Propert ies
Disposal of a further 2.2 million Nam Long shares earlier this month at an average price of VND 21,837 generating
sale proceeds of approx. US$2.1m
The sale of Aloft Kuala Lumpur Hotel, has substantially de-risked the company by enabling the manager to repay
significant proportion of its outstanding debt, and help with continue negotiations with the other lenders to other
projects to allow some cash to be distributed to shareholders. This disposal has generated a cash surplus of approx.
US$30m (equivalent to 14c per share) after repaying the associated debt, and thereby closing the gap from NAV (now
77.8c) to RNAV (98.9c) considerably. With the shares trading at 42.25c the discount on the shares to NAV has widened
to 46%, with the potential for cash distributions becoming much closer. |
N+Singer;
Aseana Properties (ASPL) is conducting an orderly asset disposal, following the shareholder vote to cease making new
investments. It has recently sold its entire position in Aloft Kuala Lumpur Sentral Hotel for US$104.2m and has utilised the
proceeds to reduce its borrowings, and is currently in negotiations with its lenders to allow a capital distribution.
Aseana Properties is a London listed property development company with assets based in Malaysia and Vietnam,
launched in April 2007; it currently has five assets in Malaysia and a further asset in Vietnam, plus an equity stake in Nam
Long Investment Corporation a listed Vietnamese equity investment.
The below table shows details on these assets:
Figure 1: Portfolio breakdown as at Q2 2016
Project Location
Expected
GDV
Effective
Ownership
Project
NAV
US$
as at
30/6/16
Project
RNAV
US$
as at
30/6/16 Notes
Tiffani by i-ZEN Malaysia US$92m 100% 3.89 3.89 99.7% sold and target to achieve 100% sales
by end of Q4 2016
SENI Mont' Kiara Malaysia US$324m 100% 19.93 21.32 96.7% sold, targeted sales 100% by Q2 2017
Sandakan Harbour Square Malaysia US$116m 100% 31.17 36.07 Planned sale Habour Mall by Q4 2017,
Sherton Hotel by Q2 2016
The Ruma Hotel & Residences
Project
Malaysia US$182m 70% 27.25 41.14 56% sold off plan, construction completion
expected Q3 2017
Seafront Resort & Residential
Development
Malaysia US$14m 100% Hotel
80% Homes
10.01 13.43 Planned sale of development lands by Q4
2016
International Hi-Tech
Healthcare Park
Vietnam US$43m 72.35% 24.52 45.6 Divestment to dispose of hospital and
parcels of land by June 2018
Equity Investment in Nam Long
Inc Corp
Vietnam 3.9% 8.16 8.16
Sub Totals 124.9 169.6
Cash 41.3 41.3
Other Assets
& Liabilities
-1.3 -1.3
Grand Totals 165.0 209.7
Number of shares in issue (m) 212.025 NAV / RNAV 77.8 98.9
Sources: Company data, N+1 Singer estimates
Other than the disposal of Aloft Kuala Lumpur Sentral Hotel, the company has made the following progress:
Harbour Mall Sandakan is now approximately 62% let, following the opening of the cinema located at the mall on
30th July
SENI Mont’ Kiara (SENI) has achieved sales of approx. 97%
RuMa Hotel and Residences has achieved sales of approx.56%
Sheraton Sandakan Hotel has achieved an average occupancy rate of 34.7% for the six month period ended 30th
June
Investment Funds Current price*: ¢0.42 Mkt cap ($m): 90
Aseana Properties | Company Comment
August 2016 2
Aseana Propert ies
Disposal of a further 2.2 million Nam Long shares earlier this month at an average price of VND 21,837 generating
sale proceeds of approx. US$2.1m
The sale of Aloft Kuala Lumpur Hotel, has substantially de-risked the company by enabling the manager to repay
significant proportion of its outstanding debt, and help with continue negotiations with the other lenders to other
projects to allow some cash to be distributed to shareholders. This disposal has generated a cash surplus of approx.
US$30m (equivalent to 14c per share) after repaying the associated debt, and thereby closing the gap from NAV (now
77.8c) to RNAV (98.9c) considerably. With the shares trading at 42.25c the discount on the shares to NAV has widened
to 46%, with the potential for cash distributions becoming much closer. |
N+1Singer;
Highlights
· Cash at the year-end was US$23m which excluded the receivable of US$7.4m which is equivalent to $0.1433 a share.
· Occupancy at the Sandakan Mall at the year-end was 40.8% though this is now currently 63.6%.
The management team will be in London during the week of the 27th of June 2016 band will be available for investor meetings. |
db,
On paper it looks a good sale of the property, but it is not expected to complete for some time yet, and given the track record of these guys, I will believe it when I see it.
Some body (MM) struck lucky picking a few up at 33p before the announcement.
I bought a couple of lots at higher prices, but not particularly tempted to buy any more at the moment.
Noting your previous comment, I actually sold a few SIHL today at 77.5c. I've traded in and out of SIHL a couple of times, and will be back in if they fall back to the low 60's again. I retain about a third of my holding, as they are outside the ISA, and I'm happy to wait until the new tax year before I sell. |
Bought back in. |
I've sold up here and bought SIHL -on a similar discount to NAV. |
low life scum look like they are trying to pull a fast one by offering a tender and not participating. That will take them to over 50% and therefore take control of the company. Should just do the honourable thing and make an offer for the entire company. |
Property Portfolio Highlights
Malaysia
During the quarter under review, Aseana's sale of ongoing development units is progressing well. As at end of April 2012, sales of SENI Mont' Kiara had advanced to 79%, compared to 71% in January 2012 with sales and purchase agreements signed. The Company is also pleased to announce that all 129 retails lots for Sandakan Harbour Square Project (Phases 1 and 2) have been sold.
On 13 March 2012, Aseana received the formal Development Order approval for 200 units of luxury residences and a 263-room boutique hotel for KLCC Kia Peng Project. The residences mostly consist of small apartments that will be marketed as an affordable luxury for buyers. It is also intended that the hotel suites be pre-sold on a sale and leaseback basis and operated under an international brand. Detailed project planning is now in its final stage with sales launch and construction targeted for Q4 2012.
Aseana achieved a significant milestone by completing the Harbour Mall Sandakan in March 2012. Leasing activities to both local and international retailers are currently ongoing, with notable tenants such as Parkwell Departmental Store and Supermarket, Levi's, The Body Shop, Watsons, GNC, Tomei and Guardian amongst others. Meanwhile, the construction of the Four Points by Sheraton Sandakan hotel is targeted for completion in Q2 2012. Both Harbour Mall Sandakan and Four Points by Sheraton Sandakan hotel are situated in Sandakan Harbour Square, Sandakan and are targeted to commence operation in Q2 2012.
Vietnam
The Phuoc Long B project is currently undergoing detailed planning following the award of Investment License in November last year. Phase 1 of 37 villas is targeted for sales launch and construction in Q3 2012. |
Aseana Properties Limited (LSE: ASPL), a property developer investing in Malaysia and Vietnam, listed on the Main Market of the London Stock Exchange, has issued its Quarterly Investor Update for the three month period to 31 December 2011. The full update can be obtained on Aseana's website at:
Highlights
· Two of Aseana's residential development projects in Ho Chi Minh City, Vietnam, Phuoc Long B Project and Tan Thuan Dong Project received Investment Licenses in November and December 2011 respectively
· On 28 December 2011, Aseana announced its intention to implement a limited share buy-back programme of up to 500,000 Ordinary Shares
· Between 4 and 24 January 2012, Aseana purchased 500,000 Ordinary Shares at an average price of 34.93 cents. The repurchased shares are currently held as treasury shares
Property Portfolio Update
Sales Update
January 2012
Projects
% Sold*
Tiffani by i-ZEN
96%
Sandakan Harbour Square
- Phase 1 (61 retail lots)
100%
- Phase 2 (68 retail lots)
99%
SENI Mont' Kiara
71%
KL Sentral Office Towers & Hotel
- Office Tower 1
100%
- Office Tower 2
100%
- Hotel
100%
* Based on sales & purchase agreements signed.
During the quarter under review, sales of luxury condominium units at Tiffani by i-ZEN and retail lots at Sandakan Harbour Square Phase 2 had advanced to 96% and 99% respectively, compared to 96% and 95% in Q3 2011. To date, 71% of SENI Mont' Kiara units have been sold with a further 8% of its units reserved and deposits received, as compared to 70% sold in Q3 2011.
Both Aseana's residential development projects in Ho Chi Minh City, Vietnam, Phuoc Long B Project and Tan Thuan Dong Project received Investment Licenses in November and December 2011 respectively, with the timing of the Tan Thuan Dong Project ahead of our previous estimation. Commencement of construction on the Phuoc Long B Project and Tan Thuan Dong Project are expected in Q2 2012 and Q4 2012 respectively. |
should help narrow nav, have taken a nibble. |
Liberum;
Real Estate
Aseana Properties Limited (ASPL) IMS and Interim dividend; NAV at 30/09/11 was $0.945/share (up slightly from $0.943/share last quarter 30/06/11).
n Group net asset value was $200.84m. Revenue of US$192.25 million and a profit before tax of US$19.78 million, compared to revenue of US$9.93 million and a loss before tax of US$15.17 million for the period ended 30 September 2010 mainly attributable to completion of SENI Mont' Kiara Phase 1. Cash and cash equivalents (net of overdrafts) of US$36.21 million at 30 September 2011 (30 June 2011: US$43.43 million), decreased mainly attributable to monies used for on-going projects
n Successfully completed 280 units in the final phase (Phase 2) of SENI Mont' Kiara luxury condominiums in Kuala Lumpur, Malaysia and obtained Certificate of Fitness in October 2011. The 135 units sold are currently being handed over to buyers.
n Signing of Management Agreement on 11 November 2011 between Aseana and Starwood Asia Pacific Hotels & Resorts Pte Ltd to appoint Starwood as the operator of the Kuala Lumpur Sentral Hotel under the 'Aloft' brand
n Aseana has successfully raised debt financing through a 10-year Guaranteed Medium Term Notes Programme of up to about US$162 million to be issued in Malaysia, the proceeds raised of which will be utilised to refinance the construction of the Four Points by Sheraton Sandakan hotel and the Harbour Mall Sandakan and to part finance the acquisition of the Aloft Kuala Lumpur Sentral hotel, all properties located in Malaysia.
n Aseana confirms the payment of an interim dividend for the six months ended 30 June 2011 of US$0.01 per ordinary share. The dividend will be paid on 15 December 2011 to Shareholders on the register at the close of business on 25 November 2011.
Liberum View:
n We do not envisage a high level of NAV growth in the near term as the Vietnamese assets remain early stage and NAV already reflects market prices for Malaysian asset sales. The shares are trading at a considerable 60% discount to 30/09/11 NAV. However we feel a key omission to the Aseana interims was any comment on discount control management and proactive programmes for narrowing the substantial discount. |
CHAIRMAN'S STATEMENT
Introduction
We are pleased to announce the half year results for Aseana Properties Limited ("Aseana") and its group of companies ("the Group") for the six months ended 30 June 2011. In the year to date, there was a small diverging trend between the Malaysian and Vietnamese property markets. Whilst the Malaysian property market has enjoyed a fairly robust recovery from the trough in 2009, the Vietnamese property market continues on a slow path to recovery. It is anticipated that the recent global events led by the European sovereign debt issue and downgrade of the US credit rating by Standard & Poor's may weigh on investor confidence in the short term. These global uncertainties affirm Aseana's conservative strategy of balancing the management of near term risks and investing in the future growth of the Company. Maintaining a strong balance sheet and liquidity will be key priorities for Aseana in the near term.
Amidst these uncertainties, we are pleased to note that Aseana has recorded positive results for the six months ended 30 June 2011. In particular, the completion of SENI Mont' Kiara Phase 1 demonstrates the Company's ability to complete a large scale development over a period of challenging business conditions.
Results
For the six months ended 30 June 2011, the Group recorded revenue of US$189.67 million (H1 2010: US$2.35 million) and a net profit for the period of US$6.89 million (H1 2010: loss of US$13.33 million).
For the period under review, the revenue and profit were mainly derived from SENI Mont' Kiara Phase 1 following its completion and issuance of certificate of occupation in April 2011.
Net asset value for the Group has improved to US$200.52 million (31 December 2010: US$192.87 million) or US$0.943 per share (31 December 2010: US$0.904).
Review of Activities & Property Portfolio
Sales status:
Projects
% sales as at
July 2011
% sales as at
December 2010
Tiffani by i-ZEN
95%
95%
SENI Mont' Kiara
68%
67%
Sandakan Harbour Square - Phase 2 retail lots
94%
85%
KL Sentral Office Towers & Hotel
- Office tower 1
- Office tower 2
- Hotel
100%
100%
100%
100%
100%
100%
Malaysia
In April 2011, the Group completed the construction of SENI Mont' Kiara Phase 1 consisting of 325 units of luxury condominiums. The completion of these units has contributed positively to the results of the Group for the period under review. Phase 2 of SENI Mont' Kiara is expected to be completed in September 2011. Approximately US$63.31 million of deferred revenue currently on the balance sheet of the Group is expected to be recognised as revenue in the income statement upon its completion. The Manager has put in place various marketing plans for the remaining units at SENI Mont' Kiara.
In January 2011, the Company announced its withdrawal from an option to acquire a piece of development land in Mont' Kiara, Kuala Lumpur known as the TM Mont' Kiara Commercial Development. Aseana's withdrawal was due to uncertainty in receiving the necessary approvals from the relevant authorities.
The remaining half of the year will be a busy period for Aseana as we work on completing the final phase of SENI Mont' Kiara as well as the retail mall and Four Points by Sheraton Hotel in Sandakan Harbour Square. Development planning for the KLCC Kia Peng Residential Project is also in full swing and we expect to launch the sales of the project in early 2012.
Vietnam
In May 2011, Aseana announced that it had mutually agreed with Prudential Property Investment Management (Singapore) Pte Ltd ("PRUPIM Singapore") to terminate the conditional agreement to sell a 49% stake in its wholly-owned subsidiary, ASPL PV Limited to the PRUPIM Vietnam Property Fund in respect of the Tan Thuan Dong residential development in Ho Chi Minh City. The decision to terminate the agreement was due to unforeseen delays in fulfilling the conditions of the agreement, which resulted in delays to the development timetable that did not meet with PRUPIM Vietnam Property Fund's investment criteria. These conditions were initially expected to be fulfilled by the end of 2010, but are now expected in Q3 2011. However, the exit by PRUPIM Vietnam Property Fund does not affect the commercial feasibility of the development nor the ability of Aseana and Nam Long Investment Corporation ("Nam Long") to complete the development as planned. Aseana will continue the partnership with Nam Long to develop the residential project on a 80:20 basis.
In April 2011, Aseana entered into a conditional agreement to develop a residential project on a 56,212 sq m parcel of land in District 9 of Ho Chi Minh City, known as Phuoc Long B. The project, consisting of 37 villas and 460 apartment units, will be developed by Aseana and Nam Long on a 55:45 basis. The project is located in a sought after and established residential area with a river frontage. The planning and licensing process is currently underway with construction expected to begin in the fourth quarter of 2011.
Aseana continues to make good progress on its City International Hospital development in the International Hi-Tech Healthcare Park, Ho Chi Minh City. Construction has now reached the fifth storey of the nine-storey building and is on course for completion by the end of 2012. Depending on market conditions, the Company is looking to launch the sales of first phase of the residential component of the project in early 2012.
MOHAMMED AZLAN HASHIM
Chairman |
I sold out after exchanging emails with the company. Pointed out a share buyback should be launched. Was told they see better returns within their projects. Pointed out the company was run for the benefit of the investment manager rather than shareholders and that they have performed terribly relative to the market they operate in. Their targeted returns of 20% are nothing more that pipe dreams. They haven't managed it on a single property and I doubt they will ever manage it going forward. |
Liberum;
Aseana Properties (ASPL / BUY) Q1 NAV -1.32%. ASPL reports an unaudited NAV/share of $0.896 at 31st March 2011 or $190.4m, representing a 1.32% loss. ASPL reports their separate "realisable" NAV/share of $1.155 or $245.39 or a gain of 0.35% in the quarter. Loss before tax of $2.54m was attributable to income on the sale of completed properties in Tiffani by i-ZEN and Sandakan Harbour Square (Phase 2) against marketing expenses of ongoing projects of US$1.48 million, of which revenue has not been recognised during the period. The market value of all projects in their respective local currency remained unchanged as at 31 December 2010. Liberum View: There was little change in valuation during the quarter with the uplift on realisable NAV coming from currency effects while there were some added expenses from marketing slightly offsetting an increase in income. While we do not expect significant NAV growth in the near term, we continue to believe the discount of 55.4% to realisable NAV and 43% to NAV (realisable NAV based on market values of property portfolio vs. cost in NAV) is too wide. Recent transactions in 1 Mont' Kiara have underpinned this valuation while cash of $37.85m is on the balance sheet (15% of RNAV and 34.5% of mkt cap). We believe a discount control policy may also be considered to help narrow this discount. We covered ASPL in more detail in our recent Emerging Markets Alternative View recommending as a BUY, |
Liberum;
Aseana Properties Limited (ASPL / BUY) - Aseana and PRUPIM Singapore terminate cooperation and disposal in the Tan Thuan Dong residential development in Ho Chi Minh City. ASPL announces that it has mutually agreed with Prudential Property Investment Management (Singapore) Pte. Ltd. to terminate the conditional agreement to sell a 49% stake in its wholly-owned subsidiary ASPL PV Limited to the PRUPIM Vietnam Property Fund, which is managed by PRUPIM Singapore (a subsidiary of Prudential Plc), in respect of the Tan Thuan Dong residential development. Aseana previously announced the signing of the conditional agreement with the PRUPIM Vietnam Property Fund on 24/8/2010. 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, to the joint venture company. These conditions are now expected to be fulfilled in Q3 2011. The delays are expected to have a minimal impact on the expected returns of the Development, because the Development is not expected to launch its sales program until late 2011. ASPL PV Limited is a SPV owning 80% of the Development in a joint venture with Nam Long Investment Corporation. Aseana's conditional initial investment in the joint venture is $9.6m. Management are disappointed that their maiden partnership with PRUPIM Vietnam Property Fund did not materialise and this termination is mutual and amicable. The delays that the Development is facing are administrative in nature. Management believes Development's timetable is back on a firm footing of expected commencement of construction towards the end of this year. Liberum View: It is disappointing that the sale of 39% interest in Tan Thuan Dong development to PRUPIM Vietnam did not materialise. This residential development in Ho Chi Minh City has experienced challenging situation with delays in transfer of the land use right and authorities' approval. Full approvals for the project are now expected towards Q3 2011. Despite the prolonged process, ASPL continues to be committed to this development as the initial cost of the land acquisition is deemed attractive to generate targeted return. Other projects in Vietman continue to progress according to schedule with the start of construction in May 2010 in the first phase of International Hi-tech Healthcare Park. ASPL trades at 42% discount to NAV. |
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