Business
Aseana and Prupim Singapore terminate cooperation
Aseana and Prupim Singapore terminate cooperation.
About this update from Aseana Properties Limited
[{"type":"text","content":"\n \nRNS Number : 8848F Aseana Properties Limited 04 May 2011 \n \n\nThe following amendment has been made to the 'Aseana and PRUPIM Singapore terminate cooperation and disposal in the Tan Thuan Dong residential development in Ho Chi Minh City' announcement released on 03 May 2011 at 07.30 under RNS number 7781F.\n \nThe amended sentence is identified with an asterisk (*).\n \nAll other details remain unchanged.\n \n4 May 2011\n \nAseana Properties Limited\n(\"Aseana\")\n \nAseana and PRUPIM Singapore terminate cooperation and disposal in the Tan Thuan Dong residential development in Ho Chi Minh City\n \nAseana Properties Limited (LSE: ASPL), a property developer investing in Malaysia and Vietnam, listed on the Main Market of the London Stock Exchange, announces that it has 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, 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 August 2010. \n \nPRUPIM 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. The delays to the Development timetable did not meet with PRUPIM Vietnam Property Fund's investment criteria.\n \nAs set out in the Company's 2010 final results announcement, these conditions were initially expected to have been fulfilled by the end of 2010, but are now expected in Q3 2011. However, the delays are expected to have a minimal impact on the expected returns of the Development, because notwithstanding the current challenging market conditions in the Ho Chi Minh City residential property sector, the Development is not expected to launch its sales program until late 2011. *The exit by PRUPIM Vietnam Property Fund does not affect the commercial feasibility of the Development or the abi...