11 July 2013
Divestment of stake in Signature One 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 Signature One project site located in District 2, Ho Chi Minh City.
The Signature One Project is a development site with a total site area of 6,351 square metres which was acquired by VNL in 2006 for development into a high-end residential apartment complex. However, subsequent to the acquisition, the market experienced a significant increase in the number of apartment developments in the area and now the supply of apartments far outweighs demand. Within the immediate vicinity of the divested site there are a number of completed and partially completed apartment projects that remain unsold to date. Given the oversupply, the Investment Manager decided not to proceed with the development of this site.
VNL has signed an agreement to divest its 70 percent stake in the project at a valuation 3.3 percent below the current net asset value of the investment. This will result in net proceeds of USD2.7 million for the Company. VNL has already received an initial payment equivalent to 70 percent of the total payment from the buyer, with the remaining 30 percent to be collected by the end of July 2013.
Speaking on the transaction, Managing Director, David Blackhall stated, “The closure of this transaction is the third exit since VNL's EGM on 21 November 2012, where shareholders supported a further three year term which included a new strategy focused on realization of assets. The proceeds will be utilized to cover the continuation of the share buyback programme and operating costs. Following the exit, VNL now has 33 projects in its portfolio.”
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.
VinaCapital Investment Management Limited
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Numis Securities Limited, Broker
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