VNL divestment of Golden Gain JSC stake

RNS
3 November 2010

VinaLand Limited

Sale of stake in Golden Gain Vietnam JSC

Ho Chi Minh City – VinaLand Limited (“the Company” or “VNL”), the AIM-quoted investment vehicle established to target key growth segments within Vietnam's emerging real estate market, announces today the partial sale of its equity stake in Golden Gain Vietnam Joint Stock Company, a wholly-owned subsidiary which owns a residential development project in Hanoi.

VNL invested a total of USD16.0 million in the Golden Gain-owned project, which was acquired in October 2008. Golden Gain owns the project, a 2.5-hectare apartment complex development in Hanoi, under a 100 percent foreign-invested enterprise (FIE) licence.

VNL is selling an 85 percent stake in Golden Gain to a Vietnamese company. The final proceeds from the sale will depend on the land tax and licensing costs that the purchaser will incur in order to transform the project from a leasehold to a freehold structure.  Depending on the final settlement price, the divestment will result in proceeds to VNL of USD36.2-40.4 million, for an IRR ranging from 49-56 percent.

A portion of the proceeds have already been collected and allocated to other investments. The Investment Manager expects to apply the remaining cash received to existing investment commitments, and any surplus funds will be distributed in accordance with the distribution policy of the Company, as announced last week.

Commenting on the sale, Don Lam, a Director of the Company, said: “Vietnam’s residential market continues to offer stellar returns for investors, including retail-level sale of villas and apartments, or project-level sales such as this divestment. VNL is well-placed in this market, with a range of residential projects at different stages of development. The high demand for modern housing in Vietnam is a long-term trend that will continue to drive the growth of our fund.”

Enquiries:
Michael L. Gray
VinaCapital Investment Management Limited
Investor Relations/Communications
+84 8 821 9930
michael.gray@vinacapital.com

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

Philip Secrett
Grant Thornton, Nominated Adviser
+44 20 7383 5100
philip.j.secrett@uk.gt.com

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

Andrew Walton
Financial Dynamics, Public Relations (London)
+44 2072697204
andrew.walton@fd.com

Notes for editors:

About VinaLand Limited
VinaLand Limited (VNL.L) is a closed end fund trading on the London Stock Exchange (AIM). Launched in 2006, VNL is the largest listed fund for investment in Vietnam’s emerging real estate sector. The fund focuses on the key growth sectors including residential, office, retail, hospitality and leisure, and high tech/industrial properties. The manager’s objective is to provide shareholders with an attractive level of income as well as creating a potential for capital growth. More information can be found at www.vinacapital.com/vnl.

About VinaCapital Group
VinaCapital Group is the leading asset management and financial services group in Vietnam. The Group combines its deep market experience and networks to generate strategic investment and financing products, alongside merger and acquisition activities. VinaCapital manages total assets valued at USD1.8 billion at May 2010. VinaCapital also has a dominant stake in VinaSecurities JSC, a brokerage firm. VinaCapital currently employs over 200 investment personnel in its offices in Ho Chi Minh City, Hanoi, Danang, Nha Trang and Hong Kong. More information on the Group can be found at www.vinacapital.com.