VNL update on residential project sales

VinaCapital Group

Update on residential project sales and marketing

Ho Chi Minh City – VinaCapital Group, a leading asset management, investment banking and real estate firm focused on Vietnam, announces today the results of sales and marketing of residential properties during the third quarter of 2009.

During July and August 2009, a total of 167 sales reservations were recorded at soft launch events for villas in Danang and Ho Chi Minh City, representing contracts worth a total of USD65.3 million.

The Ocean Villas
The Ocean Villas, designed and developed by VinaCapital Real Estate Ltd, form part of the 260-hectare Danang Beach Resort near the central coastal city of Danang. Situated on a Greg Norman-designed golf course, a total of 115 luxury beachfront villas have been released to the market, with sale and purchase agreements for 30 villas finalized and sales reservations received for an additional 56 units as of 31 August 2009. The total sales proceeds from the 115 villas is expected to exceed USD73 million.

The Garland
At the Garland, a waterfront residential development in Ho Chi Minh City’s District 9, the soft launch of the project’s villa component saw sales reservations for all 53 homes within one week. The total value of these reservations is USD15.3 million, an average of USD289,000 for each of the 277sq.m bare shell, semi-detached villas.

“The rapid sales reservations recorded in July and August shows the current strength of Vietnam’s residential real estate market,” says David Henry, Managing Director of VinaCapital Real Estate Ltd. “Demand is particularly high in the mid-range market addressing Vietnam’s rising middle class. Vietnam’s GDP growth rate of over four percent in 2009 is due to the strength of its domestic economy, and this is driving the organic growth of the local real estate market.

“We are very excited about the performance of our current projects and view it as a clear indicator of the many opportunities available to foreign investors in Vietnam” David says.

VinaCapital’s upcoming residential projects include the October 2009 soft launch of the Azura, a 225-unit luxury condominium tower that is part of the World Trade Center Danang project, and the first phase of the Dai Phuoc Lotus island township site in Dong Nai Province, near Ho Chi Minh City, which will feature 370 semi-detached and detached houses.

In addition, a groundbreaking ceremony was held on 2 September 2009 for the 30-hectare Binh Khanh residential project in District 2, Ho Chi Minh City. This project comprises 4,200 resettlement homes being delivered by VinaCapital on behalf of the municipal government.

VinaCapital is the investment manager and developer of real estate assets owned by VinaLand Limited (VNL) and the Vietnam Opportunity Fund (VOF), two AIM-traded closed-end funds. VNL and VOF have invested in a 75/25 percent ratio, respectively, in all the residential development projects mentioned above except The Garland, which is wholly-owned by VNL.

Forward-looking statements:
This news release contains 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. 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.

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 USD1.6 billion in assets under management as of July 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.

Enquiries:
Ms Chi Nguyen
VinaCapital Investment Management Limited
Investor Relations
+84 8 821 9930
chi.nguyen@vinacapital.com

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

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

David Cranmer
Financial Dynamics, Public Relations (London)
+44 207 269 7100
david.cranmer@fd.com

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