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VinaLand Limited   -  VNL   

Divestment of Capital Square and Long Truong

Released 08:25 09-Apr-2018

RNS Number : 1925K
VinaLand Limited
09 April 2018
 

9 April 2018

 

VinaLand Limited (the "Company" or "VNL")

 

Divestment of Capital Square and Long Truong Projects


VinaLand Limited, the AIM-quoted investment vehicle established to target strategic segments within Vietnam's emerging real estate market, announces that it will divest 100% of its stake in the undeveloped land parcels of the Capital Square project, and also 100% of the Long Truong project. The Capital Square project located in Danang was acquired by VNL in 2006 and was approved for future mixed-use development.  While the Long Truong project located in Ho Chi Minh City   and acquired by VNL in 2008 was earmarked for future residential development.


VNL will divest its entire stake in the undeveloped land parcels of Capital Square project to Thinh Vuong Production and Trading Services Company Limited at a total valuation of 0.6% above the 31 March 2018 unaudited net asset value, and 0.7% above the net asset value at the time of the 2016 EGM including adjustments for additional investments over this period. This transaction will result in net cash proceeds of USD22.7 million to VNL, and at an IRR of 28.2%. At the time of this announcement, VNL has received approximately 95% of proceeds with the remaining proceeds expected to be received by no later than July 2018.


Furthermore, VNL's disposal of its entire stake in the Long Truong project will result in net proceeds of USD3.0 million to VNL which is equal to the 31 March 2018 unaudited net asset value, and 22.6% below the net asset value at the time of the 2016 EGM including adjustments for additional investments over this period.  At the time of this announcement, 100% of the disposal proceeds have been received from the buyer, and it is expected these proceeds will be remitted to VNL by no later than September 2018.


Speaking on the transaction, Managing Director David Blackhall stated, "Both of these disposals are in accordance with the current strategy to divest projects in a controlled and orderly manner. The proceeds received from these exits 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 https://vnl.vinacapital.com.

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For enquiries:

Jonathan Viet Luu / Joel Weiden                                                                       
VinaCapital Investment Management Limited
Investor Relations / Communications
+84 28 3821 9930
jonathan.luu@vinacapital.com / 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

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Divestment of Capital Square and Long Truong - RNS