Rowsley

Rowsley (Iskandar comment): In late Dec ’12, Rowsley announced plans to venture into property development in the Iskandar region, through the acquisition of i) RSP Architects for $187m, and ii) Iskandar land parcels for $358m. To fund the purchases, Rowsley will issue an aggregate 3.6b new shares at $0.15/sh, in a $545m all share deal. The land, which measures 9.23 ha (c.1m sf), is located within Flagship A, Iskandar. It is on a waterfront site just a few hundred metres from Johor’s new customs, immigration and quarantine facility, in close proximity to Spore. The land is to be developed into an integrated mixed-use township centering on a major shopping, entertainment and residential complex. It also comprises hotel, commercial and office developments. It is expected to yield no less than 10m sf of GFA. Adjacent to the land will be a medical hub to be jointly developed by Thomson Medical and Vantage (a JV between Peter Lim and the royal family of Johor state). Subject to the acquisitions being completed, Rowsley is proposing 2-for-1 bonus warrants with exercise price of $0.18/ sh, to be issued to the existing shareholders.