VNL partial divestment of Century 21 project

RNS Reach

28 August 2012

VinaLand Limited

Partial divestment of stake in Parcel A of the Century 21 project

Ho Chi Minh City – VinaLand Limited (“the Company” or “VNL”), the AIM-quoted investment vehicle established to target strategic segments within Vietnam's emerging real estate market, announces that it has, through a number of transactions, partially divested its stake in Parcel A site of the Century 21 real estate project.
The VNL portfolio includes a real estate development project in Ho Chi Minh City know as the Century 21 which comprises of three individual land parcels known as Parcels A, B and C. The largest of these land parcels is the 30ha Nam Rach Chiec (Parcel C) site. In July, VNL managed to progress the restructuring of these holding companies with the local joint venture partner.  This progress has resulted in both VNL and VinaCapital Vietnam Opportunity Fund (VOF) moving a step closer to securing a combined 100 percent stake of the Parcel C site in exchange for ownership of the Parcel B site.  

As part of this restructure, VNL has entered into an agreement to divest its stake in the Parcel A site at a valuation slightly above the 30 June 2012 NAV to a foreign buyer. In conjunction with this transaction, VNL has received a refundable advance of USD3.75 million with the full balance to be collected over the next 12 months, subject to completion of material conditions precedent, which is an essential term for final completion of the sale.    
Speaking on the transaction, Deputy Managing Director, David Blackhall stated, “Overall the objective of securing 100 percent ownership of Parcel C which is the largest and most valuable site for a residential and commercial development is now a step closer.  This enables VNL to proceed with the final licensing so that it is available for development and/or exit.”

Notes to Editors:

VinaCapital
VinaCapital is a leading asset management and real estate development firm in Vietnam, with a diversified portfolio of USD1.6 billion in assets under management. VinaCapital was founded in 2003 and boasts a team of investment professionals who bring extensive international finance and investment experience to the firm. Our mission is to produce superior returns for investors by using our experience and knowledge to identify the key trends and opportunities that emerge as Vietnam continues to develop its economy. To achieve this, VinaCapital has teams with broad experience covering equity markets, fixed income, private equity, venture capital, real estate and infrastructure.

VinaCapital manages three closed-end funds trading on the AIM Market of the London Stock Exchange. These funds are: VinaCapital Vietnam Opportunity Fund Limited (VOF), VinaLand Limited (VNL), and Vietnam Infrastructure Limited (VNI). VinaCapital also co-manages the DFJ VinaCapital L.P. technology venture capital fund with Draper Fisher Jurvetson.

VinaCapital has offices in Ho Chi Minh City, Hanoi, Danang, Nha Trang, Phnom Penh (Cambodia) and Singapore. More information about VinaCapital is available at www.vinacapital.com.

Enquiries:

David Dropsey
VinaCapital Investment Management Limited
Investor Relations/Communications
+84 8 821 9930
david.dropsey@vinacapital.com

Philip Secrett
Grant Thornton Corporate Finance, Nominated Adviser
+44 (0)20 7583 5100
philip.j.secrett@uk.gt.com
 
Hiroshi Funaki
LCF Edmond de Rothschild Securities, Broker
+44 20 7845 5960
funds@lcfr.co.uk

David Benda / Hugh Jonathan
Numis Securities Limited, Broker
+44 (0)20 7260 1000

Mark Walters
FTI Consulting, Public Relations (Hong Kong)
+852 3716 9802
mark.walters@fticonsulting.com

Andrew Walton
FTI Consulting, Public Relations (London)
+44 (0)20 7269 7204
andrew.walton@fticonsulting.com