20 May 2016 07:00
20 May 2016
VinaLand Limited ("the Company" or "VNL")
Divestment of stake in Danang Golf Project
Ho Chi Minh City - VinaLand Limited, the AIM-quoted investment vehicle established to target strategic segments within Vietnam's emerging real estate market, announces that it is divesting its stake in the Danang Golf Project. The project, acquired by VNL in 2006, is situated in Danang on 219.8ha of land and includes a completed 18-hole golf course with related facilities as well as residential dwellings, some of which are currently under construction. The project site also has an approved master plan for future development.
VNL will dispose of its entire stake to An Phu Import Export Investment and Trading Company Limited at a total valuation 0.2% below the 31 March 2016 unaudited net asset value and 6.7% below the net asset value at the time of VNL's previous extraordinary meeting (EGM) in November 2012, including adjustments for additional investments over this period. This transaction will result in net cash proceeds of USD37.4 million to VNL, and an IRR of 8.9%. At the time of this announcement USD34.1 million of the proceeds have been received, with the remaining proceeds expected to be received by no later than June 2016.
Speaking on the transaction, Managing Director, David Blackhall stated, "The month of May 2016 has marked two significant transactions which have resulted in the disposal of the two largest projects in our portfolio. The divestment of the Century 21 project on 11 May 2016 followed by the Danang Golf Project on 20 May 2016 are consistent with the Company's strategy agreed at the EGM in November 2015, where shareholders supported an extension of up to 12 months to continue with the strategy focused on the realisation of assets as agreed at the November 2012 EGM. The Danang Golf Project disposal was approved by the Board prior to 21 November 2015, and in accordance with the previously stated policy, the proceeds received from this exit, in conjunction with the collection of proceeds from past disposals as well as future disposals will ensure the Company is on track to achieve its objectives prior to 21 November 2016. The combined proceeds will be used to cover VNL's commitments including operating costs, provision for the ZDP facility, accrued performance fee and distributions to shareholders both in June and later this year. Further details on the proposed USD35 million Capital Distribution will be announced in due course with expected timing to be early June 2016. "
Based on this positive momentum with project disposals, the Board believes it is now timely to commence dialogue with shareholders and is planning meetings with shareholders to discuss future strategic options including further distributions before convening the next EGM. Meetings in Europe are planned for the week commencing 6 June 2016 including; Copenhagen 7 June, Zurich 8 June, London 9 June and Brussels and Utrecht 10 June, with meetings in Asia following thereafter. A final schedule will be announced in the coming days.
Enquiries:Jeremy Greenberg
VinaCapital Investment Management Limited
Investor Relations
+84 8 3821 9930
jeremy.greenberg@vinacapital.com
Joel Weiden
VinaCapital Investment Management Limited
Communications
+84 8 3821 9930
joel.weiden@vinacapital.com
Philip Secrett
Grant Thornton UK LLP, Nominated Adviser
+44 (0)20 7383 5100
philip.j.secrett@uk.gt.com
David Benda / Hugh Jonathan
Numis Securities Limited, Broker
+44 (0)20 7260 1000
funds@numis.com
Daniel Jason
Peregrine Communications, Public Relations (London)
+44 (0) 20 3040 0872
daniel.jason@peregrinecommunications.com