20 January 2011
Sale of stake in Quoc Te project
Ho Chi Minh City – VinaLand Limited (“the Company” or “VNL”), the AIM-quoted investment vehicle established to target key growth segments within Vietnam's emerging real estate market, announces today the sale of its entire equity stake in the Quoc Te project, a residential development in District 9, Ho Chi Minh City.
VNL acquired a 100 percent stake in the 3.1 hectare Quoc Te site in 2007. The sale of the site for almost USD10.9 million to a Vietnamese conglomerate results in a pre-tax IRR of 31 percent. This represents a 39 percent increase over the carrying value of the holding prior to the deal closing.
The Quoc Te project site comprises villas and medium-rise apartment towers on a site located along the Long Thang–Dau Giay Highway, currently under construction.
David Henry, Managing Director of VNL’s investment manager, said: “Quoc Te was fully valued at this exit price, and the disposal will release funds that will be used both for obligations on other projects and our commitment to distribute cash to shareholders later in 2011.”
VNL has recently completed The Garland villa project, also in District 9, and is considering nearby sites for The Garland II.
“Residential projects, particularly mid-range villas and townhouses, remain our focus given the high potential to generate IRRs over 20 percent and create value for our shareholders,” David said.
VNL is proceeding with residential sales under its VinaLiving lifestyle brand at projects including My Gia Nha Trang township; The Ocean Villas and Cham Condominiums at the Danang Beach Resort; The Azura apartments at World Trade Center Danang; and Dai Phuoc Lotus township in the Ho Chi Minh City region.
Notes to Editors:
VinaCapital Group is a leading asset management, investment banking and real estate development firm with unrivalled experience in the Vietnam market. VinaCapital Group was founded in 2003 and has grown from a single USD10 million fund to a diversified investment firm with over USD1.7 billion in assets under management as of December 2010.
VinaCapital manages three closed-end funds trading on the AIM Market of the London Stock Exchange. These are: VinaCapital Vietnam Opportunity Fund (VOF); VinaLand Limited (VNL); and Vietnam Infrastructure Limited (VNI). VinaCapital also co-manages the DFJ VinaCapital technology venture capital fund with Draper Fisher Jurvetson. More information is available at www.vinacapital.com.
Michael L. Gray
VinaCapital Group, Communications
+84 8 3821 9930
Hiroshi Funaki +44 20 7845 5960
LCF Edmond de Rothschild Securities, Broker
Financial Dynamics, Public Relations (Hong Kong)
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Financial Dynamics, Public Relations (London)
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Grant Thornton Corporate Finance, Nominated Adviser
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