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Frasers Property unit takes 75% stake in Vietnam property development company

MULTINATIONAL property company, Frasers Property, said on Thursday that it will be spending 799 billion dong (S$47.3 million) for a majority stake in Phu An Dien Real Estate Joint Stock Company (PAD), which will undertake the development of a residential-cum-commercial project in Vietnam.

The project will be on a mixed-use development plot in Linh Trung Ward, Thu Duc District, in Ho Chi Minh City.

Frasers Property is entering into the deal via its subsidiary, Frasers Property Investments (Vietnam) 2 Pte Ltd, which has signed a conditional share purchase agreement with Tran Thai Lands Company Limited to acquire the 45 million shares, or 75 per cent stake, in PAD.

The price for PAD was arrived at on a willing-buyer, willing-seller basis, based on the estimated net asset value of PAD at completion, taking into account the value of the property, Frasers Property's announcement said.

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It added that the proposed acquisition is not expected to have a material effect on the net tangible assets per share or earnings per share of the group for the current financial year.