VNL.L Regulatory News (VNL)

22 Mar 2006 09:12

VinaLand Limited22 March 2006 22 March 2006 VinaLand Limited ("VinaLand" or the "Company") Admission to trading on AIM, a market operated by the London Stock Exchange plc VinaLand Limited (AIM: VNL) is pleased to announce that it has been admitted totrading on AIM, a market operated by the London Stock Exchange plc ("AIM"), andthat its ordinary shares commenced trading today on AIM under the symbol "VNL".The Company raised US$204,844,779 in gross proceeds in a placing of 204,844,779ordinary shares at US$1.00 per share. Grant Thornton Corporate Finance is theCompany's Nominated Adviser and LCF Edmond de Rothschild Securities Limited isthe Company's Broker. About VinaLand Limited VinaLand is a newly incorporated closed-end Cayman Islands registered, exemptedcompany created to engage in property investment and development in Vietnam andsurrounding Asian countries. Investment Objective and Strategy The investment objective of the Company is to provide shareholders with anattractive level of income, together with the potential for capital growth, frominvesting in a diversified portfolio of mainly Vietnamese property anddevelopment projects. The Company will operate initially in five propertysectors, namely office, retail, residential, industrial and leisure with aprimary focus on Ho Chi Minh City and a secondary focus on Hanoi and key leisureareas in Vietnam. The Investment Manager and the Development Adviser VinaCapital Investment Management Limited ("VinaCapital" or the "InvestmentManager") has been appointed to manage the Company's assets and propertydevelopment activities. VinaCapital, a fund management and advisory business,draws on the talents of over 30 professionals and operates out of itsheadquarters in Ho Chi Minh City and offices in Hanoi and Hong Kong. VinaCapital Real Estate Limited ("VinaCapital Real Estate" or the "DevelopmentAdviser"), a Vietnamese registered entity and a wholly-owned subsidiary ofVinaCapital, is a recently established firm of real estate developmentconsultants based in Ho Chi Minh City. VinaCapital Real Estate has beenappointed as VinaCapital's development adviser and also provides real estateadvisory services to Vietnam Opportunity Fund, VinaCapital's first fund.VinaCapital Real Estate has a team of 21 professionals having a combined 60years of expertise and experience in all aspects of property developmentincluding legal and financial matters, planning applications and approvals,construction permit approvals, structural and civil engineering, and project andconstruction management. An investment committee (the "Investment Committee"), comprised of individualswith financial and business backgrounds and extensive hands-on, localexperience, and an advisory panel (the "Advisory Panel"), consisting of localinvestment specialists, business leaders and government officials, have beenestablished to augment the expertise of the Investment Manager. Investment Policies and Restrictions The Company will adhere to the following investment policies and restrictions: • Geographical focus: At least 70 per cent. of theCompany's gross asset value will be invested in Vietnam. Up to a maximum of 30per cent. of the gross asset value may also be invested in neighboring Asiancountries namely China, Cambodia and Laos, should the Company's directors (the"Directors" or the "Board") consider that such investments would offerpotentially attractive returns. • Sector focus: The Company will initially targetfive property sectors: office, retail, residential, industrial and leisure. TheCompany's primary focus will be Ho Chi Minh City, with a secondary focus onHanoi and key leisure areas, including but not limited to Nha Trang, Hoi An, andDanang. • Type of investment: As a general principle, theCompany is permitted to engage in all forms of property investment and propertydevelopment as allowed under the laws of each jurisdiction in which it operates,utilising instruments and structures that may be suitable to allow participationin selected investment opportunities. These investments will be made directly orthrough investee companies (which are special purpose vehicles establishedspecifically for each real estate development project falling within the scopeof the Company's investment policies, each a "Project") or by way of jointventure partnerships with other reputable developers. If the Investment Managerand the Directors deem it appropriate, the Company may also invest up to 20 percent. of its gross asset value in other property funds which themselves investin property in the target region. All investments must be approved by theInvestment Committee and, where a project or investment exceeds ten per cent. ofthe net asset value, in addition, the approval of a majority of the Board mustalso be obtained. • Control of investments: The Company will seek toown a controlling interest in its investments, either by owning a directcontrolling participating interest in the Project or by controlling the investeecompanies through which the investments are made. In the event that the Companyholds a minority interest in a Project, it will seek to secure adequate minorityprotection rights. • Realisation of investments: The Company will aimto realise individual investments when the Board, with the advice of theInvestment Manager, the Investment Committee and the Development Adviser,believes the realisation would be in the best interests of the Company andfulfill its investment objectives. The Company intends to affect exits throughdisposals of its Projects or interests in investee companies to institutionaland private investors. • Investment size: No single investment may, at thetime of investment, exceed 20 per cent. of the gross asset value. Vietnam The Socialist Republic of Vietnam has a population of over 83 million and a landarea of 325,360 sqkm bordered by Cambodia, Laos and China. The population isyoung, with over 70 per cent. being under 35 years of age and with a highliteracy rate of 94 per cent. Average wages are low and currently about half thelevel of those in China. Vietnam is one of the fastest growing economies inAsia. Its GDP grew 8.4 per cent. in 2005 and is projected to grow an average of7.5 per cent. over the next three years, the second highest predicted rate inAsia. Since the beginning of the Government's "doi moi" (renovation) reform policy,the real estate sector has transitioned from being a sector that wasstate-controlled to one that is more market-led. This shift has been driven by achange in attitude towards the ownership of real estate by the public andenabled by continuing economic reform and development. The country's economicgrowth has given rise to a burgeoning urban middle class with an increasedamount of disposable income. This increased purchasing power, combined withVietnam's increased international integration including a rising influx ofinternational tourists and multinational companies, has led to an increasingdemand for real estate in all sectors. Recent developments in real estateregulation and laws are a result of public and business pressures demandingchange as well as a desire to avoid the poor performance of the first round ofinternational property investments. The Vietnamese government is beginning torealise that the real estate sector must be allowed to develop for the benefitof the country with assistance from the private sector. Along with these regulatory changes, there are several other drivers of realestate development in Vietnam. The emergence of large scale urban infrastructureprojects, an increasing standard of living, a young, well educated populationand the availability of mortgages are all applying pressure on a limited supplyof real estate. As a result, Vietnam is now witnessing what the Directors and the InvestmentManager believe will be the beginning of a period of strong and sustained growthwhich is likened to that of China in the late 1990s. The Directors and theInvestment Manager believe that potentially attractive investment opportunitiesexist because real estate developers have limited funding options and lack ofexpertise to appropriately capture these opportunities. In connection with the Company's AIM listing, Horst Geicke, Chairman of theboard of directors of VinaLand, commented: "We are pleased to have listed on the AIM Vietnam's first publicly tradedproperty fund. With the country making great strides in terms of growth andlegal reform, we believe that now is the time to capture the real estateopportunities afforded by such progress." Enquiries: VinaLand LimitedChi Nguyen Tel: +848 821 9930 Grant Thornton Corporate Finance (Nominated Adviser)Philip Secrett Tel: +44 870 991 2578 LCF Edmond de Rothschild Securities Limited (Broker/Market Maker)Claire Heathfield Tel: +44 (20) 7845 5960 This information is provided by RNS The company news service from the London Stock Exchange