Aseana Properties Limited
13 July 2026
13 July 2026
Aseana Properties Limited
(the "Company" or "Aseana")
Hotel Management Agreements for The RuMa Hotel, Kuala Lumpur and Ormond Sandakan
Aseana (LSE: ASPL), a property developer in Malaysia listed on the Main Market of the London Stock Exchange, announces that two of its wholly-owned subsidiaries, The RuMa Hotel KL Sdn. Bhd. and ICSD Ventures Sdn. Bhd., have entered into hotel management agreements (collectively referred to as the "HMAs" or "Hotel Management Agreements") with Ormond Group Sdn. Bhd. for the provision of hotel management services in respect of The RuMa Hotel and Residences and Ormond Sandakan (collectively referred to as the "Hotels") respectively (collectively referred to as the "Transactions").
Background of the Parties
The Company
Aseana is a company incorporated in Jersey and listed on the Main Market of the London Stock Exchange under the ticker symbol "ASPL". The principal activities of the Company and its subsidiaries (collectively referred to as the "Group") are the development of upscale residential and hospitality projects in Malaysia.
ICSD Ventures Sdn. Bhd. ("ICSD")
ICSD was incorporated in Malaysia on 15 November 2002 under the Companies Act 2016 as a private limited company limited by shares. The principal activities of ICSD are property development.
The RuMa Hotel KL Sdn. Bhd. ("TRH")
TRH was incorporated in Malaysia on 28 September 2012 under the Companies Act 2016 as a private limited company limited by shares. The principal activities of TRH are hotel operations.
Ormond Group Sdn. Bhd. ("OGSB")
OGSB was incorporated in Malaysia on 16 November 2018 under the Companies Act 2016 as a private limited company limited by shares. The principal activities of OGSB are investment holding and provision of business management consultancy services.
Rationale and Benefits of the HMAs
The Board of Directors of Aseana (the "Board") considers both HMAs to be in the best interests of the Company and its shareholders for the following reasons:
• Ormond Group's brand portfolio, particularly the Ormond brand, is strategically aligned with ICSD's target segments and objective to deliver design-led, experience-focused hospitality at approachable price points;
• The Hotels will benefit from OGSB's strong management expertise, operational 'know-how' and established training programmes;
• OGSB's affiliation with AirAsia's loyalty and distribution ecosystem provides the Hotels with access to a broad regional customer base and additional distribution channels;
• The engagement of OGSB creates synergies and operational efficiencies across the Group's Malaysian hospitality portfolio; and
• The fee structure is consistent with market benchmarks for comparable hotel operators of a similar class and standing.
KEY TERMS and Financial Effects
The Group has entered into Hotel Management Agreements with OGSB for an initial term of two years and may be renewed for a further two-year period by mutual agreement of the parties. In consideration for the services to be provided by OGSB to the Group in connection with the Hotels, OGSB shall be entitled to be paid a series of fees which are predominately based on a percentage of the gross operating revenue and gross operating profit generated by the Hotels.
The total fees payable under the HMAs will vary according to the operating performance of the Hotels over the terms of the HMAs.
Based on a number of assumptions around operational performance of the Hotels, the Board of Aseana currently estimate that the total fees payable to OGSB over the term of the HMAs to be approximately RM7.85m (equivalent to c. £1.4 million). There are a number of variables associated with the assumptions around future operational performance with the Hotels, some of which are outside the control of the Group, and as such the actual fee payable to OGSB under the term of the HMAs may end up being higher or lower than is estimated as at the date of this announcement.
Save for the Management Fee payable under the HMAs, the Transactions are not expected to have any other material impact on the net assets, earnings per share, or gearing of the Group for the financial year ending 31 December 2026.
The Board is of the opinion that the HMAs are in the best interests of the Company and its shareholders. The Board is satisfied that the Management Fee payable under the HMAs are generally consistent with the market benchmark for management and marketing fees of comparable hotel operators of similar class and standing.
ICSD and TRH had on 6 July 2026 entered into the HMAs with OGSB, with the TRH HMA effective from 13 July 2026. The TRH HMA, by virtue of the quantum of the potential fees payable under the agreement, has resulted in the HMAs, when aggregated, being treated as material related party transactions under DTR 7.3.
Related Party Transaction
OGSB is currently a wholly-owned subsidiary of ECM Libra Group Berhad ("ECMLG"), in which Dato' Lim Kian Onn holds a 40.61% interest. OGSB will, upon completion of a proposed share issuance, become a 50:50 joint venture between ECMLG and TP Real Estate Holdings Pte Ltd, a wholly-owned subsidiary of Plato Capital Limited, of which Dato' Lim Kian Onn is the controlling shareholder. Dato' Lim Kian Onn also holds approximately 40.37% of the issued share capital of Aseana. Accordingly, OGSB is a related party of the Company within the meaning of IAS 24 (Related Party Disclosures) as applied under the FCA's Disclosure Guidance and Transparency Rules (the "DTRs"), and the HMAs when taken in aggregate constitute material related party transactions.
The Board has reviewed and approved the terms of both HMAs and are satisfied that each HMA has been entered into on an arm's length basis and on normal commercial terms, and that the terms are fair and reasonable and in the interests of Aseana and its shareholders as a whole.
The Transactions, when aggregated, constitute material related party transactions for the purposes of DTR 7.3 and do not constitute an offer to sell or subscribe for, or a solicitation of any offer to buy, any securities.
Enquiries
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Aseana Properties Limited |
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Leong Kheng Cheong |
kc.leong@aseanapropertieslimited.com |
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Lim Tian Huat |
tianhuat.lim@aseanapropertieslimited.com |
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Dato' Dr. Thong Kok Cheong |
kokcheong.thong@aseanapropertieslimited.com |
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Allenby Capital Limited (Financial Adviser) |
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Nick Naylor / Nick Athanas / Ashur Joseph |
+44 (0) 20 3328 5656 |
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