Residential sales update April 2011

13 April 2011

Update on residential project sales and marketing

Ho Chi Minh City – VinaCapital, a leading asset management and real estate development firm focused on Vietnam, announces today the results of sales and marketing of residential properties during the first quarter of 2011.

During the first three months of 2011, a record total of 264 sale and purchase (SPA) and capital contribution (CCA) contracts were signed, representing a value of USD20.9 million. The CCAs include a large number of cleared land plots at Project Venus, a township in Nha Trang, while 31 SPAs were executed on completed and under-construction condominiums, townhouses and villas at projects in Danang and the Ho Chi Minh City region, as detailed below.

The USD20.9 million sales figure for Q1 2011 is significantly higher than the USD7.4 million in sales recorded during the same period in 2010. For 2010 full year, USD73.8 million in SPAs were signed.

All VinaCapital-managed residential real estate assets are marketed under the VinaLiving brand, Vietnam’s first tailored living and lifestyle brand. VinaLiving will hold its first property exhibition in Danang from 30 April to 3 May 2011, to coincide with the city’s international fireworks competition where up to one million domestic visitors are expected.

Project Venus – township in Nha Trang, central Vietnam
VinaLiving has launched the first four phases of this township development in the central coastal city of Nha Trang. The four phases consist of 695 total land lots, ranging in size from 100-300sq.m. Approximately 85 percent of Phases 1-3 lots have sold, and 60 percent of Phase 4 lots. The township project comprises over 150 hectares and features freehold villa and townhouse plots alongside schools, a hospital and shopping facilities, all within 10 minutes of the Nha Trang coastal strip. The largest show village on the central coast of Vietnam is currently under construction, with a completion date scheduled for Q3 2011.

Project Niagara – integrated resort in Danang, central Vietnam
Sales are underway for units at three villa enclaves and one condominium tower at this 260-hectare integrated resort in Danang, central Vietnam. Total SPAs signed have reached a value of USD64 million. The official launch of the Norman Estate’s 33-unit villa enclave is set for Q2 2011, with seven units already reserved for sale.

Project Danube – mixed-use development in Danang, central Vietnam
Construction of the residential tower of this mixed-use urban development in downtown Danang has reached the 18th storey, with SPAs signed for 45 units of the 225 units. Negotiations are underway with key potential retail anchor tenants for the 48,000sq.m Phase 2 retail centre that is a key component of the project.

Project Jupiter – township in Dong Nai province, near Ho Chi Minh City
The official launch event of the five-villa display centre at this 200-hectare township project will be held on 9 April. To date, 120 SPAs have been signed for villas and townhouses, including premium prices in excess of USD500,000 for non-waterfront, five-bedroom villas.

Upcoming project launches
During 2011, at least two major launch events are planned for large-scale residential developments in Ho Chi Minh City. The first, Project Mars, is a 30-hectare residential development in District 9, in the same area that saw the successful launch and sale of a 53-villa development in 2009-2010. The second, Project Nile, is a major city-centre landmark mixed-use development in District 5, in Ho Chi Minh City’s Chinatown commercial area.

Commenting on the residential sales results over the second half of 2010, David Henry, Managing Director of VinaCapital’s real estate division, said: “We are very pleased with the continued strong performance of our current projects. The two launches planned for 2011 should allow us to match and likely exceed the sales figure from 2010.

 “The sales environment in early 2011 is challenging, given the high interest rates prevailing in Vietnam. Nonetheless, our projects are seeing sustained demand given their prime locations and quality, further supported by the VinaLiving brand name which is now gaining traction in the marketplace.”

The real estate assets described herein are owned by VinaLand Limited (VNL.L) and the VinaCapital Vietnam Opportunity Fund (VOF.L), two AIM-traded closed-end funds managed by VinaCapital Investment Management Ltd. VNL and VOF have invested in a 75/25 percent ratio, respectively, in all the residential development projects mentioned above.

Forward-looking statements:
This news release may contain statements that constitute forward-looking statements that include but are not limited to statements regarding the expected income generated from residential real estate sales of both built and unbuilt properties owned by funds managed by VinaCapital Group (“the Company”). Undue reliance should not be placed on forward-looking statements. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements. These risks and uncertainties include but are not limited to construction risks and delays, and unforeseen changes to general economic and business conditions. Forward-looking statements are based on the estimates and opinions of the Company's management at the time the statements are made. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.

About VinaCapital
VinaCapital is the leading investment management and real estate development firm in Vietnam, with a diversified portfolio of USD1.7 billion in assets under management. VinaCapital was founded in 2003 and boasts a team of managing directors 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 industry-leading asset class teams covering capital markets, private equity, fixed income, 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 USD32 million 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:
Michael L. Gray
VinaCapital Group, Communications
+84 8 3821 9930
michael.gray@vinacapital.com

Hiroshi Funaki +44 20 7845 5960
LCF Edmond de Rothschild Securities, Broker
funds@lcfr.co.uk

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

Alastair Hetherington
Financial Dynamics, Public Relations (Hong Kong)
+852 3716 9802
alastair.hetherington@fd.com

Andrew Walton
Financial Dynamics, Public Relations (London)
+44 207 269 7204
andrew.walton@fd.com

Philip Secrett
Grant Thornton Corporate Finance, Nominated Adviser
+44 20 7383 5100
philip.j.secrett@gtuk.com