Aseana Properties, a property developer investing in Malaysia and Vietnam, has entered into a conditional agreement to sell a 49 per cent stake in its wholly owned subsidiary, ASPL PV, to the Prupim Vietnam Property Fund managed by Prudential Property Investment Management (Singapore). 

ASPL PV is a special purpose vehicle created to develop a residential development in the Tan Thuan Dong area, District 7 of Ho Chi Minh City, Vietnam.

It owns 80 per cent of the development in a joint venture with Nam Long Investment. Nam Long is a private property developer based in Ho Chi Minh City with over 17 years of experience in the region and a land bank of over 570 hectares in locations across southern Vietnam.
 
Completion of the sale is conditional upon the development receiving the necessary consents including a transfer of land use rights certificate for the development land and authorities’ issuance of an investment certificate, both of which are anticipated to be issued before the end of this year.
 
The 20,158 square metre development is located in District 7 of Ho Chi Minh City, a suburban residential and commercial location popular with many Vietnamese and expatriates. The development will consist of two towers of residences and a small purpose-built commercial area. It is expected to have a gross development value of approximately USD120m. Preliminary site preparation work has commenced and construction is expected to begin in Q1 2011.
 
Aseana owns a strategic minority stake in Nam Long, acquired in July 2008.
 
Dato’ Mohammed Azlan bin Hashim, chairman of Aseana, says: "We are delighted that Prupim Vietnam Property Fund is partnering with Aseana on this scheme, which we are confident will be mutually beneficial. This transaction also clearly demonstrates support for the development, with project funding being provided on a joint basis. The reduction in Aseana’s financial commitment to this particular development will enable it to participate in other developments, while at the same time diversifying our investment portfolio.”