SGLV Sgl Vietnam

    RNS Number : 8149V
  SGL Vietnam Development Limited
  03 June 2008
   
    Tuesday, 3 June 2008
    SGL Vietnam Development Limited (the "Company")
    Termination of Joint Venture Agreement for investment in Thu Duc, Ho Chi Minh City
    SGL Vietnam Development Limited (AIM:SGLV), a company established to engage in property investment and development primarily in Vietnam,
announced that it has decided not to pursue the Joint Venture investment with a local partner, Dung Thanh Manufacturing, Construction &
Trading Co., Ltd. (the "JV Partner"), for the development of residential and commercial property in the Thu Duc district of Ho Chi Minh City
("HCMC"). The Joint Venture Agreement was signed and announced on 16 January 2008. Subsequent to this, as part of the Investment Manager's
ongoing due diligence process, it was discovered that the JV Partner had materially breached the conditions of the joint venture agreement.
As a result the Board has decided to liquidate the agreement.
    The economic environment in Vietnam continues to face difficult challenges, which the Company and the Investment Manager believe will
offer future investment opportunities. The Company's funds are held in USD and the Board remains cautious and will only invest in those
opportunities which it feels represent value for shareholders. The Investment Manager has a strong potential pipeline identified, which the
Company intends to access directly and through co-investment opportunities. 
    The Company will continue to review and assess potential projects in Hanoi and Ho Chi Minh City, including a number of promising
candidates which are undergoing active financial and legal due diligence by the Investment Manager. The Company remains cautious of the
lower end of the residential sector across Vietnam, and will continue to focus on its core areas:
    *     residential projects in well-established neighbourhoods
    *     luxury residential projects in prime locations
    *     retail projects in well-established neighbourhoods
    *     leisure/commercial projects in strategic locations
    *     affordable hotel and serviced apartment projects in key locations.
    Commenting on the announcement, Ms. Susan Sim, CEO of Investment Manager, said: "We regret that we were unable to proceed with the
investment. Although we are experiencing challenges in Vietnam's economy, we believe the market conditions still provide SGLV with exciting
opportunities and remain optimistic about our future prospects."

    Enquiries:
SGL Vietnam Development Limited
Susan Sim: +84 907 359 259
    George Goh: +65 6543 5881
    Collins Stewart
Adrian Hadden, Stewart Wallace: +44 (0)20 7523 8350

This information is provided by RNS
The company news service from the London Stock Exchange
 
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