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Divestment - Century 21 direct real estate project

Released 07:00 11-May-2016

Divestment - Century 21 direct real estate project

11 May 2016

VinaCapital Vietnam Opportunity Fund Limited (“the Company” or “VOF”)

Divestment of stake in the Century 21 direct real estate project

Ho Chi Minh City - VinaCapital Vietnam Opportunity Fund Limited, a London Stock Exchange Main Market traded investment company established to target key growth segments in Vietnam, announces that it is divesting its entire stake in the Century 21 direct real estate 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 and was acquired in 2006.

VOF, alongside VinaLand Limited, has sold this stake to Khai Hung Real Estate Co. Ltd. This transaction will result in net cash proceeds of USD28.7 million to VOF, approximately USD3.2 million higher than the 31 March 2016 unaudited net asset value. At the time of this announcement the proceeds have been fully received. As a result of the sale, VOF’s holding in direct real estate development projects is reduced from 12.0% to 8.4% of total NAV as of 31 March 2016.

VOF Managing Director Andy Ho commented, “With the closure of this divestment, VOF’s exposure to direct real estate falls to less than ten percent of total NAV. This is a significant milestone in the Company’s ongoing strategy to reduce direct real estate holdings, and enables VOF to remain opportunistic in areas of the market where we see significant upside, namely privately negotiated deals and OTC investments. We continue to see robust deal flow in these asset classes, as reflected in our recent OTC investment into Airports Corporation of Vietnam, and our privately negotiated investment into Thai Hoa Hospital, and we are evaluating a number of very attractive opportunities in the pipeline. Our fully realised private equity investments have delivered an IRR in excess of 20% to date, and we believe these types of investments continue to offer the most attractive returns in the market.”

Mr. Ho recently gave an update on the Company at the Numis Emerging Markets Funds Seminar, and his presentation is available on the VOF website.

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

David Benda / Hugh Jonathan
Numis Securities Limited, Broker
+44 (0)20 7260 1000
funds@numis.com

Franczeska Hanford / Martin Bourgaize
Northern Trust International Fund Administration Services (Guernsey) Limited, Company Secretary
+44 1481 745001
fk26@ntrs.com / meb16@ntrs.com

Daniel Jason
Peregrine Communications, Public Relations (London)
+44 (0) 20 3040 0872
daniel.jason@peregrinecommunications.com


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Divestment - Century 21 direct real estate project - RNS