10 Apr 2017 16:19
10 April 2017VinaLand Limited (the "Company" or "VNL")
Divestment of the stake in the Dai Phuoc Lotus 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 has divested its entire stake in the Dai Phuoc Lotus project, located in Dong Nai province, Vietnam (the "Project"). The Project consists of a total site area of 198.5ha and was acquired by VNL in 2007. The Project is residential development and is split into 6 zones. It is currently undergoing its first phase of construction and sales in one zone, with a further zone having received Master Plan approval for development.
VNL disposed of its entire stake in the Project to a company in the China Fortune Land Development Co., Ltd group for net cash proceeds of approximately USD48.8million, resulting of an IRR of -3.0% to the Company. The total valuation was 11.2% above the 31 December 2016 audited net asset value and 21.8% above the unaudited net asset value at the time of VNL's extraordinary meeting in November 2016, both figures include adjustments for additional investments up to the date of exit. The proceeds have been fully received at the time of this announcement.
Speaking on the transaction, Managing Director David Blackhall stated, "This disposal is in accordance with the current stated policy to divest projects in a controlled and orderly manner, the proceeds received from this exit in conjunction with those collected from past and future disposals will be used to cover VNL's commitments including operating costs and distributions to shareholders."
More information on the Company is available at www.vnl-fund.com.
Enquiries:
Jonathan Viet Luu
VinaCapital Investment Management Limited
Investor Relations
+84 8 3821 9930
jonathan.luu@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