Asia Pacific Properties JSC


Executive Summary

Asia Pacific Properties (“APP”) JSC is a property investment company listed on the Mongolian Stock Exchange.

APP will operate in both urban and rural areas of Mongolia and is looking to become the leading property investment firm listed on the Mongolian Stock Exchange (MSE”). Its principle focus is the construction and sale of property in Ulaanbaatar, the trading of high margin property in Ulaanbaatar and the acquisition of properties with a high yield potential in 2nd and 3rd tier cities.

Asia Pacific Properties offers a variety of opportunities for investors wishing to gain exposure to the Mongolian real estate across a diverse number of sectors in the real estate market.

Business Model

1. Construction and Sale of Property

APP has identified a number of key plots in Ulaanbaatar that will be used to build luxury apartments. These will typically be targeted at a tier below Asia Pacific Investment Partners’ most recent developments. This market has been identified as extremely liquid and it is expected that the initial project will be fully pre-sold prior to the construction process beginning.

2. Acquisition of High Yielding Properties

APP will look to inject the Rural Development Corporation’s ("RDC") assets into its business activities. The principle focus for this part of the business is the acquisition and renovation of retail and dormitory style properties with a high-yield potential in rural areas. These exceptional returns are a consequence of the properties being located in the newly established mining communities on the periphery of the major mining projects. Expansion of these properties will generate further uplift in revenue.

3. Trading of High Margin Property

APP will focus on acquiring low priced apartments in Soviet constructed blocks and then renovating them to a standard that will allow for a quick sale at a significant uplift from cost. Research and statistics collated by Mongolian Properties has enabled APP to identify key target areas for this activity.