15 January 2013
Divestment of stake in Nguyen Du Building
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 30 Nguyen Du office building located in Hanoi, on 11 January 2013.
The 30 Nguyen Du office building is an operating asset with 2,240 square metres of net leasable area which was originally acquired by VNL in 2008 for future redevelopment into an inner city boutique hotel. However, subsequent to this acquisition the market experienced a significant increase in the number of 3 star hotels being developed in central Hanoi and the building continued to maintain around 90 percent occupancy during this time as an office building so the Investment Manager retained the asset as an operating C-grade office building. With the change in the development strategy of VNL in 2011 the property was earmarked as a non-core asset and a buyer was sourced to enable an exit.
VNL sold its entire 65 percent stake in the project at a valuation 6.5 percent above the current net asset value, resulting in USD3.3 million in net proceeds for the Company and the Board in conjunction with the Manager is currently reviewing how the proceeds will be utilized.
Speaking on the transaction, Deputy Managing Director, David Blackhall stated, “The closure of this transaction is the first exit since VNL's EGM on 21 November 2012, where shareholders supported a new three year term which included a new strategy focused on realization of assets. The duration between the signing of the Nguyen Du office building sales contract in Q2 2012 and the closure of this transaction in January 2013 reflects the fact that onshore transactions can take considerable time to close, in particular where conditions precedent such as obtaining a number of government approvals are required. Following the exit, VNL now has 35 projects in its portfolio.”
VinaCapital is a leading asset management and real estate development firm in Vietnam, with a diversified portfolio of USD1.6 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, Phnom Penh (Cambodia) and Singapore. More information about VinaCapital is available at www.vinacapital.com.
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