Business
Sale of Aloft Kuala Lumpur Sentral Hotel
Sale of Aloft Kuala Lumpur Sentral Hotel.
About this update from Aseana Properties Limited
[{"type":"text","content":"\n \nRNS Number : 5186T Aseana Properties Limited 30 March 2016 \n\nAseana Properties Limited\n(\"Aseana\" or the \"Company\")\n \n \nSale of Aloft Kuala Lumpur Sentral Hotel, Malaysia\nUpdate on divestment investment policy\n \n \nAseana Properties Limited (LSE: ASPL), a property developer in Malaysia and Vietnam listed on the Main Market of the London Stock Exchange, announces that it has agreed to dispose of the Aloft Kuala Lumpur Sentral Hotel (\"Aloft Hotel\") to Prosper Group Holdings Limited (\"Prosper Group\") (the \"Disposal\"). The gross transaction value is approximately RM418.7 million (approx. US$104.6 million), which includes the purchase of the entire issued share capital of ASPL M3B Limited and Iringan Flora Sdn Bhd (the \"Aloft Companies\"), and assumption of certain debts, assets and liabilities of the Aloft Companies. The transaction, which is expected to complete in Q3 2016, is conditional upon satisfactory completion of a due diligence review by Prosper Group, and certain consents being obtained from Starwood Asia Pacific Hotels & Resorts Pte Ltd, the operator of the Aloft Hotel, and consent from the Company's financiers for the Aloft Hotel.\n \nThe Aloft Hotel is a 482-room hotel located in the heart of Kuala Lumpur Sentral, Kuala Lumpur's urban transportation hub. Developed by Aseana, the Aloft Hotel has achieved commendable operating performance since opening in March 2013. The Aloft Hotel achieved an occupancy rate of 79% in 2015.\n \nThis disposal of one of the key investments in the Company's portfolio represents a significant milestone in the divestment investment policy approved by Shareholders on 22 June 2015, pursuant to which the Company is seeking to realise the Company's assets in a controlled, orderly and timely manner.\n \nAt current exchange rates, Aseana will record a gain of approximately US$35.9 million on completion of the Disposal. This represents a premium of approximately US$37.7 million to the latest Project NAV of minus US$1.8 million, and a discount of approximately US$1.0 million to the Project RNAV of US$36.9 million, based on figures published in the Aseana Tracker dated 24 February 2016. The proceeds from the Disposal will be used to fully repay the Medium Term Notes (\"MTNs\") issued for the Aloft ...