01 October 2013
Divestment of stake in Hao Khang project
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 the company that owns the Hao Khang project located in District 9, Ho Chi Minh City.
The Hao Khang project is a future development site with a total site area of 49,655 square metres which was acquired by VNL in 2007 for development into an apartment and villa complex adjacent to Ho Chi Minh City’s internal ring road. However, subsequent to the acquisition, the real estate market experienced a significant increase in the number of apartment developments in the area coupled with high interest rates and residential prices trending downwards. Given these high risk and challenging market conditions, the Investment Manager concluded that VNL should not proceed with the development of this site but rather should seek to sell it.
VNL has signed an agreement to divest its 70 percent stake in the project at a valuation 2.9 percent above the current net asset value of the investment. This will result in net proceeds of USD4.6 million for the Company. VNL has received an initial payment equivalent to 70 percent of the total payment from the buyer, with the remaining 30 percent to be received by November 2013.
Speaking on the transaction, Managing Director, David Blackhall stated, “The closure of this transaction is the fourth full exit since VNL's EGM on 21 November 2012, where shareholders supported a new three year term which included a revised strategy focused on realisation of assets. The proceeds will be utilised to cover the continuation of the share buyback programme and operating costs. Following this transaction, VNL’s portfolio now comprises 32 projects.”
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.
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