VNL divestment of Vina Properties Pte

21 January 2014

VinaLand Limited

Divestment of Vina Properties Pte.

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 divested its stake in Vina Properties Pte Ltd. which owns a 5-star hotel located in Ho Chi Minh City.

The asset is an operating 278-room 5-star hotel which also includes restaurants, an electronic gaming operation, and retail areas. The hotel, which is situated in Ho Chi Minh City between the city centre and the airport, was acquired by VNL in 2007 and refurbished in 2010 to capitalise on the fast growing tourism business in Ho Chi Minh City. Since the reopening of the hotel, the four to five star hotel segments in Ho Chi Minh City have experienced significant increases in room supply which has impacted the hotel’s performance. The Company’s stake in the project resulted in net proceeds of USD16.1 million which is 19.0 percent above the net asset value at 31 December 2013. As a result of the divestment, the Company’s debt from the consolidated balance sheet has also been reduced by USD1.7 million.

Speaking on the transaction, Managing Director, David Blackhall stated, “The closure of this transaction is the sixth exit since VNL's EGM on 21 November 2012, where shareholders supported a new three year term which included a new strategy focused on the realisation of selected assets. This divestment is consistent with the Company’s strategy to divest hospitality assets over the next two years. The proceeds will be utilised to fund future distributions to shareholders and ongoing operating costs.”

About VinaCapital

VinaCapital is a leading asset management and real estate development firm in Vietnam, with a diversified portfolio of USD1.5 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 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 UK LLP, Nominated Adviser
+44 (0)20 7583 5100
philip.j.secrett@uk.gt.com
 
Hiroshi Funaki
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
funds@numis.com

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