VinaLand has sold its stakes in both the Marina project and Parcel 5 of the My Gia project. The Marina project is a future development site located in Danang and was acquired by VNL in 2008, while Parcel 5 is a block of land situated within the My Gia township development project located in Khanh Hoa Province and was acquired by VNL in 2007. VNL remains involved in actively developing other parcels within this township project.
VNL’s disposal of its entire stake in the Marina project will result in net proceeds of US1.3 million to VNL at a total valuation 0.4% above the 31 March 2016 unaudited net asset value and 49.2% below 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.
Furthermore, VNL’s disposal of its entire stake in Parcel 5 has resulted in net proceeds of US4.9 million being VNL’s share of the proceeds which have now been received by the project company at a total valuation 40.9% above the 31 March 2016 unaudited net asset value. At the time of this announcement all proceeds have been received for both disposals.
Speaking on the transaction, VNL Managing Director, David Blackhall stated, “The closure of these transactions 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 realisation of assets as agreed at the November 2012 EGM. These transactions are the first and second disposals since the 2015 EGM. The proceeds of the Marina project will be used to cover VNL’s capital commitments and operating costs, while the proceeds of Parcel 5 will be used to reduce project company debt and operating costs“.
VNL : Vinaland sells two development sites