11 May 2016 07:00
11 May 2016
VinaLand Limited ("the Company" or "VNL")
Divestment of stake in the Century 21 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 entire stake in the 21st Century International Development Joint Stock Company (Century 21 Project) located in Ho Chi Minh City, Vietnam. The site is a future residential - mixed use development site, with a total site area of 301,060 square metres which was acquired by VNL in 2006 for development into a residential and mixed use complex. Significant work was undertaken during this period in relation to master planning, re-structuring and approvals and due to the large size of the project coupled with the requirement for the Company to contribute additional capital and debt upon commencing the development the project was divested.
VNL will dispose of its entire stake in the Century 21 Project to Khai Hung Real Estate Co. Ltd, at a total valuation approximately equal to the 31 March 2016 unaudited net asset value and 18.5% above 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. The 21st Century International Development Joint Stock Company became an associate of the Company on 30 June 2015. As at year end, the Company's share of Century 21's net assets approximated the carrying value of the Company's investment in this associate. Therefore there are no separate profits or losses attributable to the asset. This transaction will result in net cash proceeds of USD75.4 million to VNL. At the time of this announcement the proceeds have been fully received. In accordance with the previously stated policy, following this disposal and in conjunction with the collection of proceeds from further disposals, the intention is to return USD35 million by way of a Capital Distribution and set aside funds to repay the ZDP facility and also pay part of the accrued performance fee to the Manager that will be triggered upon this distribution to shareholders. Such Capital Distribution to take place by early June 2016, with further distributions to follow during 2016.
Speaking on the transaction, Managing Director, David Blackhall stated, "The closure of this transaction which is the largest project in the portfolio is 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. This disposal was approved by the Board prior to 21 November 2015, and due to its size will certainly assist in achieving the Company's 2016 objectives. The proceeds will be used to cover VNL's commitments including operating costs, provision for the ZDP facility and distributions to shareholders. The Board is planning to update shareholders on VNL progress which will include meetings in Europe during the week commencing 6 June 2016, more details to follow."
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