28 January 2010
Sale of stake in Ho Chi Minh City residential 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 equity stake in The Oasis mixed-use residential/retail project in suburban Ho Chi Minh City.
The sale of the stake in the project, to a Vietnamese company, is at a value 61 percent above the holding's carrying value at 31 December 2009, resulting in a 1.6 cent per share increase in VNL's net asset value. The transaction will result in an IRR of 25 percent, or a 1.6x return on capital.
The Oasis is one block of a landmark development located along a major traffic artery in District 7, a suburban area of Ho Chi Minh City that enjoys high land values due to the presence of Phu My Hung - Vietnam's first planned urban township.
VNL acquired a 73.26 percent interest in The Oasis project in 2007, as part of a joint venture with a Vietnamese developer. The project comprises 420 residential units and over 13,000sq.m of retail space on a 1.26ha site.
The exit comes at time when a significant amount of residential stock is expected to enter the market in the immediate vicinity of the Oasis project.
Commenting on the sale, Mr David Henry, Managing Director of VNL's investment manager, said: "Vietnam's residential market continues to offer excellent returns, including retail-level sales of villas and apartments, or project-level sales such as this exit. VNL is well-placed in this market, with a range of residential projects at different stages of development."
During 2010, VNL will break ground on five residential projects in key market regions, all well-positioned to benefit from the ongoing demand for mid-range housing.
"The high demand for modern living space in Vietnam is a long-term trend that will continue to drive the growth of our fund," David said.
Notes to Editors:
VinaCapital Group is a leading asset management, investment banking and real estate consulting firm with unrivalled experience in the Vietnamese 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 2009.
VinaCapital manages three closed-end funds trading on the London Stock Exchange's Alternative Investment Market (AIM). 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.
More information on VinaLand Limited is available at www.vinacapital.com/vnl
Ms Chi Nguyen
VinaCapital Investment Management Limited
+84 8 821 9930
Hiroshi Funaki +44 20 7845 5960
LCF Edmond de Rothschild Securities, Broker
Financial Dynamics, Public Relations (Hong Kong)
+852 3716 9802
Financial Dynamics, Public Relations (London)
Grant Thornton, Nominated Adviser
+44 20 7383 5100