Mongolia (PRWEB) December 14, 2011
Pursuant to a shareholder meeting convened on December 11, 2011; Sudut JSC, a company listed on the Mongolian Stock Exchange, has passed a shareholder resolution to change the company’s name to Asia Pacific Properties JSC. The company’s ticker has also been changed from UNH to APP.
During the meeting the shareholders also unanimously approved the injection of a 100% interest in the Rural Development Corporation LLC (“RDC”) and the Oasis luxury residential development project into the newly named company, both of which were acquired from Asia Pacific Investment Partners (“APIP”).
Rural Development Corporation is a real estate development company focused on developing and commercializing residential and commercial real estate projects in 2nd and 3rd tier cities in Mongolia, which are in close proximity to the mining boom-towns in the Gobi Desert. RDC’s portfolio currently includes 13 properties in locations characterized by high levels of excess demand for quality residential and commercial real estate assets combined with low levels of competition and land construction prices. RDC’s existing portfolio enjoys very high levels of capital appreciation and yields of up to 40% per annum. The management team behind RDC has extensive experience in renovation and construction and a expertise in property acquisition, ownership procedures, laws, and regulations in Mongolia. RDC has surveyed numerous key cities along the mining supply chain and has a strong pipeline of acquisition opportunities. RDC’s value is estimated at circa US$6 million, all of which will accrue to APP shareholders without dilution, as a consequence of RDC being gifted by APIP to APP in order to build value.
The Oasis luxury residential development is currently in its final stages of planning and will commence construction in early spring. Pre-sales are already extremely strong and it is anticipated that the whole building will be fully sold prior to construction beginning. The building will be located off Seoul Street in the heart of Ulaanbaatar’s entertainment district. It will comprise of circa 30 luxury residential units with a total saleable area of approximately SQM 3,600. The development is expected to be completed in Q1 2013, with profits of circa US$4 million, all of which will accrue to APP shareholders.
Lee Cashell, Chairman of Asia Pacific Properties, commented:
“With the solid asset base and profitable businesses being injected into APP, we expect to see a strong surge in APP’s share price over the next six to twelve months. This will be further accentuated with the high earnings multiples on offer on the Mongolian Stock Exchange.”
Asia Pacific Properties will remain majority owned by Asia Pacific Investment Partners. APIP is a leading Mongolia focused operating company that is primarily engaged in property, cement, financial services and natural resources.
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