23 Dec 2013 10:55
23 December 2013
VinaLand Limited
Divestment of Prodigy Pacific Limited
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 entire stake in Prodigy Pacific Limited which owns a boutique hotel located in the Hoan Kiem District of Hanoi.
The asset is an operating 102 room hotel which also includes a restaurant, fitness centre as well as other amenities and was opened in September 2009. The hotel site which is situated in the Hanoi central business district was acquired by VNL in 2007 to capitalise on the then fast growing tourism business in the capital city of Vietnam. Since the opening of the hotel, the three to four star hotel segments in Hanoi have experienced a significant increase in supply which has negatively impacted the hotel performance. The Company's 100 percent stake in the project resulted in net proceeds of USD1.7 million which is 5.5 percent (USD100,000) below net asset value. As a result of the divestment, the Company's debt from the consolidated balance sheet has been reduced by USD4.0 million and VNL's future funding commitments related to this asset have now been removed.
Speaking on the transaction, Managing Director, David Blackhall stated, "The closure of this transaction is the fifth full exit since VNL's EGM on 21 November 2012, where shareholders supported a new three year term which included a new strategy focused on realisation of assets. This divestment is consistent with the Company's strategy to divest the hospitality assets over the next two years."
About VinaCapital
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.
Enquiries:
David DropseyVinaCapital Investment Management LimitedInvestor Relations/Communications+84 8 821 9930david.dropsey@vinacapital.com
Philip Secrett
Grant Thornton UK LLP, Nominated Adviser
+44 (0)20 7583 5100
philip.j.secrett@uk.gt.com
Hiroshi FunakiEdmond de Rothschild Securities, Broker+44 20 7845 5960funds@lcfr.co.uk
David Benda / Hugh JonathanNumis Securities Limited, Broker
+44 (0)20 7260 1000
funds@numis.com
Andrew WaltonFTI Consulting, Public Relations (London)+44 (0)20 7269 7204andrew.walton@fticonsulting.com