KUALA LUMPUR: Aseana Properties Ltd has announced that HLSL 3 Ltd Company (HLSL3), its 67 per cent owned subsidiary, has entered into an agreement with AEON Vietnam Co Ltd to develop a retail mall at the International Hi-Tech Park (IHTHP) in Ho Chi Minh City, Vietnam.
In a statement recently, Aseana said the transaction involves the disposal of a 4.7ha plot of land at IHTHP and the transfer of the development rights to AEON Vietnam.
AEON Vietnam is a subsidiary of AEON Co Ltd one of the world’s largest retailing groups with over 16,490 stores across Japan and Asia.
Last Saturday, AEON Vietnam was awarded the Investment Certificate by the People’s Committee of Ho Chi Minh City for the development, which paves the way for the final administrative step of transfering the land and development rights to AEON Vietnam, which is expected to complete by fourth quarter of this year.
According to the statement, AEON Vietnam intends to develop a 64,000 sq m retail mall, which on completion in 2016 will be the focal point of commercial activities for the IHTHP.
“The cash consideration received by HLSL3 from this transaction will be used as working capital and to repay bank borrowings at the IHTHP. The transaction was carried out at Aseana’s ascribed market value for the land and upon closing will crystallise about 26.7 per cent of Aseana’s strategy to realise assets and reduce gearing at the group level," the company said.
According to Aseana, the AEON retail mall is a key element that will bring to life the IHTHP master plan, a mixed-use scheme comprising world-class private hospitals, mixed commercial, hospitality and residential developments on a 37 ha site.
Located in the Binh Tan district, the healthcare park is about 11km from District 1, the central business and commercial district of Ho Chi Minh City.
Aseana has a 67 per cent stake in the IHTHP, while the remaining stake is held by Aseana’s joint venture partner, Hoa Lam Group, which holds a significant minority stake together with a consortium of investors from Singapore, Malaysia and Vietnam.
Commenting on the deal, Aseana chairman Datuk Mohammed Azlan Hashin said this investment by AEON in IHTHP is a significant milestone for Aseana’s property portfolio in Vietnam.