7 Sep 2009 07:00
7 September 2009
VinaLand Limited
Sale of Hilton Hanoi Opera Hotel stake
Ho Chi Minh City - VinaLand Limited ("the Company" or "VNL"), the AIM-quoted investment vehicle established to target key growth segments within Vietnam's emerging real estate market, announces today the sale of its entire equity stake in the landmark Hilton Hanoi Opera Hotel.
In July 2006, the Company purchased a 52.5 percent stake in the Hilton Hanoi, a five-star, 271-room hotel located across from the Hanoi Opera House in the centre of Vietnam's capital city. Together with a 17.5 percent stake owned by the VinaCapital Vietnam Opportunity Fund (AIM: VOF), also being sold, the two VinaCapital-managed funds held a controlling 70 percent stake in the hotel.
The Hilton Hanoi Opera Hotel was voted 'Vietnam's Leading Hotel' for five years running by the prestigious World Travel Awards, and was designated as a historic landmark property by the city of Hanoi.
The sale of the equity stake will result in an IRR of 23 percent over the three years since the stake was acquired.
Mr Stephen O'Grady, managing director of the Investment Manager's hospitality division, said: "After VOF and VNL acquired their stakes in 2006 we were able to quickly improve the hotel's operations and grow profitability. Gross operating profits rose 29.5 percent in two years to reach over USD9.5 million in 2008, which was the peak year of Vietnam's hospitality market.
"We are extremely satisfied to exit this asset at a value that is about 10 percent above the March 2009 book value of the property - used to calculate the funds' net asset values. We believe this is a clear indication that despite the global slowdown in the hospitality industry, high-quality properties in Vietnam remain very attractive for both domestic and international buyers because of their strong long-term value."
The Company is one of the largest hospitality sector investors in Vietnam, with a portfolio that includes stakes in the Movenpick Hotel Hanoi, Movenpick Hotel Saigon, Mercure La Gare Hanoi and Sheraton Nha Trang Hotel and Spa, in addition to several other hospitality projects under development.
Notes to Editors:
VinaCapital Group is a leading asset management, investment banking and real estate consulting firm with unrivalled experience in the Vietnamese market. VinaCapital Group was founded in 2003 and has grown from a single USD10 million fund to a diversified investment firm with over USD1.6 billion in assets under management as of July 2009.
VinaCapital manages three closed-end funds trading on the London Stock Exchange's Alternative Investment Market (AIM). These are:
Vietnam Opportunity Fund (VOF) is a USD706 million diversified investment fund that has consistently been among the top performing Vietnam funds.
VinaLand Limited (VNL) is a USD669 million real estate fund that was the top performing Vietnam investment fund in 2008.
Vietnam Infrastructure Limited (VNI) is a USD250 million fund established in July 2007 as the first fund to invest solely in Vietnam's infrastructure sector.
VinaCapital also co-manages the USD32 million DFJ VinaCapital technology venture capital fund with Draper Fisher Jurvetson, and owns a dominant stake in VinaSecurities JSC, a brokerage. More information is available at www.vinacapital.com.
More information on VinaLand Limited is available at www.vinacapital.com/vnl
Enquiries:
Ms Chi Nguyen
VinaCapital Investment Management Limited
Investor Relations
+84 8 821 9930chi.nguyen@vinacapital.com
Philip Secrett
Grant Thornton Corporate Finance, Nominated Adviser
+44 20 7383 5100philip.j.secrett@gtuk.com
Hiroshi Funaki +44 20 7845 5960
LCF Edmond de Rothschild Securities, Brokerfunds@lcfr.co.uk
Alastair Hetherington
Financial Dynamics, Public Relations (Hong Kong)
+852 3716 9802alastair.hetherington@fd.com
David Cranmer
Financial Dynamics, Public Relations (London)
+44 207 269 7100david.cranmer@fd.com