The amount of shares represents 75 per cent of the issued share capital of Phu An Khang which would become ownership of the subsidiary of Frasers Property after the acquisition.
It is intended that Phu An Khang will undertake the development of a residential-cum-commercial project on a mixed-use development plot in district 2, Ho Chi Minh City.
The aggregate consideration for the proposed acquisition is about $18 million which was calculated based on the estimated net asset value of Phu An Khang at completion, about $24 million, taking into account the value of the mixed-use development plot.
Earlier in 2016, Frasers Property (formerly known as Frasers Centrepoint) acquired another project in Thao Dien from An Duong Thao Dien and renamed the project to Q2 Thao Dien.
Specifically, Frasers purchased a 70 per cent stake worth $15.4 million in An Duong Thao Dien's subsidiary G Homes and undertook the project whose estimated total development cost is about $85 million.
Frasers Property currently possesses the 22-storey office building Me Linh Point Tower in district 1, Ho Chi Minh City and two serviced apartment properties including the 185-unit Fraser Suites Hanoi and 175-unit Capri by Fraser in district 7, Ho Chi Minh City.