Ananda Development PCL completes the acquisition of its landed housing portfolio in Bangkok from TMW Ananda GmbH (a property fund managed by Pramerica Real Estate Investors).

Bangkok--24 Dec--IR Network

Ananda Development PCL (“Ananda” or the “Company”) has completed the acquisition of the remaining [48.3%] of its existing landed housing portfolio (“ADO”) from its joint venture partner [TMW Ananda GmbH (a property fund managed by Pramerica Real Estate Investors)] as previously disclosed in the Company’s Prospectus dated 27 November 2012.

Mr Chanond Ruangkritya, CEO and Founder of Ananda, said, "We are delighted to have completed the ADO acquisition, which provides the company with a very meaningful footprint in the landed housing segment. The portfolio is attractively situated close to the Suvanabhumi airport and the new Mega Bangna shopping mall (which houses the largest IKEA in South East Asia) and the acquisition price allows us to offer competitively priced housing. Strategically, ADO will enable Ananda to diversify income sources as well as positioning Ananda for the expansion of the mass transit network into more suburban and lower density areas in the future. ”

The acquisition of the ADO housing portfolio was completed on the same terms and conditions as previously disclosed in the Company’s Prospectus with an estimate acquisition price of 1,000 million Thai Baht, payable in 4 equal installments of 250 million Thai Baht, with the last payment due 30 June 2014. This represents a price at net present value approximately 930 million Baht. The agreed price represents an approximate 40% discount to the residual asset value as appraised by Independent Assessor of approximately 1,415 million Thai Baht, and a major discount to the book value of approximately 2,600 million Thai Baht.

The ADO projects will be re-launched in Q1 2013 with transfers of individual houses commencing from Q3 2013 onwards. The total expected sales value of the 7 projects in the portfolio totals over 7,300 million Thai Baht with expected sales around 3,300 million Thai Baht and transfers around 2,500 million Thai Baht in 2013. The remainder of the portfolio is expected to be sold and transferred for revenue recognition in 2014-16.

The acquisition will be raised some funding by proceeds from Ananda’s recent Common Stock Public Offering.

-KP-

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