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Symphony NAV up 10 per cent in first half

Symphony International’s net asset value as at 30 June 2012 was USD1.2414 per share, a 10.46 per cent increase from USD1.1239 on 31 December 2011, according to the company’s interim results.

Increased deal activity resulted in the completion of several new transactions in early 2012.
In February 2012, Symphony invested in Integrated Healthcare Hastaneler Turkey (IHT), which is the controlling shareholder of Acibadem Saglik Yatirimlari Holding (ASYH), one of the largest healthcare groups in Turkey. At the time of the transaction, Symphony agreed to convert its investment into a minority interest in IHT’s parent, IHH Healthcare Berhad (IHH), at the time of IHH’s IPO. IHH commenced trading on the Malaysian and Singaporean stock exchanges on 25 July 2012 following the IPO which raised approximately USD2bn. The investment provides exposure to one of the largest healthcare platforms in Asia, as well as other emerging markets.
The value of the company’s investment in the hospitality company Minor International (MINT) grew to approximately USD140.4m (30 June 2011: USD96.5m), representing an unrealised gain in value of approximately USD73.4m.
Minuet sold approximately 69.2 rai (11.1 hectares) of land in Bangkok, Thailand, to SC Asset Corporation Public Company (SC Asset). The sale price, based on exchange rates prevailing at that time, was over 20 per cent above Minuet’s average land cost.
Symphony increased its shareholding in Parkway Life Real Estate Investment Trust (PREIT) from 5.92 per cent to 6.36 per cent. On 1 August 2012 PREIT completed the acquisition of strata titled units/lots within the Gleneagles Medical Centre, Kuala Lumpur which is PREIT’s first foray into Malaysia.
Approximately USD29.0m was invested in January 2012 for a 49 per cent interest in Desaru, a property joint venture in Malaysia with a subsidiary of Khazanah, the investment holding arm of the Government of Malaysia.
Symphony also increased its interest in a venture which acquired a hotel in Niseko, Hokkaido, Japan in 2011 from 30 per cent, to 37.5 per cent. At the end of March 2012, Symphony also funded its portion for an acquisition of a second adjacent property through the joint venture company. The two properties will be redeveloped into an upmarket ski-resort development.
Two of the four apartments held at the One Central Residences development in Macau were sold in July 2012. The gross proceeds were USD4.1m, a gain of approximately 55 per cent. over the original cost. Deposits have also been received for the remaining two apartments.
Symphony invested in the luxury leather accessories brand Maison Takuya in January 2012 and has a contingent commitment to invest additional amounts in the future. The total investment will be less than two per cent of NAV.
Symphony’s portfolio companies all reported strong performance during the period despite the continued volatility in financial markets and the deceleration of domestic demand in Asia.

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