20 March 2012
Divestment of stake in the Clear Interest Group
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 today it has sold its entire 75 percent interest in the Clear Interest Group, to the Vietnam Opportunity Fund (VOF) at a price above NAV as of 31 December 2011. The Clear Interest Group holds, among other assets, a 19.95 percent interest in the Legend Hotel, a five-star hotel located in central Ho Chi Minh City, acquired in early 2010. The value of the Company’s interest was determined by reference to an independent third party appraisal.
According to Mr. David Henry, Managing Director of VinaCapital Real Estate, given the future cash commitments that would be required for this investment if it were to be retained, VNL took this opportunity to divest now, at fair value. However, still believing in the long term potential of the property, VNL has secured a carried interest as part of the transaction to further benefit VNL shareholders as the asset’s future value is fully maximized at a later time.
In announcing the sale today, Mr. Henry, indicated that the fund’s core focus over the last 18 months has been to concentrate on its residential portfolio of over 15 projects in four key cities throughout Vietnam. It is considered that this element of VNL’s portfolio is most likely to generate shareholder value, given its emphasis on low rise villa projects.
VNL Chairman, Mr. Nicholas Brooke, commented, “We are pleased to conclude this divestment which demonstrates the continuation of our realization program for selected assets. The Board will look to focus on other advantageous realizations as opportunities arise and to continuing the development of our villa projects under the VinaLivng brand. Furthermore, the Board will be working closely with the Manager in regard to the allocation of the proceeds from this divestment which will be shared amongst ongoing project commitments, continuation of the share buyback program and fund operating costs, which includes management fees.”
Notes to Editors:
VinaCapital Group is a leading asset management, investment banking and real estate consulting firm with unrivalled experience in the Vietnamese market. VinaCapital Group was founded in 2003 and has grown from a single USD10 million fund to a diversified investment firm with USD1.6 billion in assets under management as of December 2011.
VinaCapital manages three closed-end funds trading on the London Stock Exchange's Alternative Investment Market (AIM). These are: VinaCapital Vietnam Opportunity Fund (VOF); VinaLand Limited (VNL); and Vietnam Infrastructure Limited (VNI). VinaCapital also co-manages the DFJ VinaCapital technology venture capital fund with Draper Fisher Jurvetson. More information is available at www.vinacapital.com.
More information on VinaLand Limited is available at www.vinacapital.com/vnl.
VinaCapital Investment Management Limited
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