VinaLand and VinaCapital Vietnam Opportunities are selling their stakes in the Danang Golf Project. The project, acquired by VNL and VOF in 2006, is situated in Danang on 219.8ha of land and includes a completed 18-hole golf course with related facilities as well as residential dwellings, some of which are currently under construction. The project site also has an approved master plan for future development.
VinaLand and VinaCapital Vietnam Opportunities will dispose of their entire stakes to An Phu Import Export Investment and Trading Company Limited.
For VNL this is at a total valuation 0.2% below the 31 March 2016 unaudited net asset value and 6.7% 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. This transaction will result in net cash proceeds of USD37.4 million to VNL, and an IRR of 8.9%. At the time of this announcement USD34.1 million of the proceeds have been received, with the remaining proceeds expected to be received by no later than June 2016.
For VOF the valuation is 2.0% above the 28 February 2016 unaudited net asset value. This transaction will result in net cash proceeds of USD12.2 million to VinaCapital Vietnam Opportunities. At the time of this announcement approximately USD11.0 million of the proceeds have been received, with the remaining proceeds
expected to be received by no later than July 2016.
Speaking on the transaction, VNL’s Managing Director, David Blackhall stated, “The month of May 2016 has marked two significant transactions which have resulted in the disposal of the two largest projects in our portfolio. The divestment of the Century 21 project on 11 May 2016 followed by the Danang Golf Project on 20 May 2016 are 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 strategy focused on the realisation of assets as agreed at the November 2012 EGM.
The Danang Golf Project disposal was approved by the Board prior to 21 November 2015, and in accordance with the previously stated policy, the proceeds received from this exit, in conjunction with the collection of proceeds from past disposals as well as future disposals will ensure the Company is on track to achieve its objectives prior to 21 November 2016. The combined proceeds will be used to cover VNL’s commitments including operating costs, provision for the ZDP facility, accrued performance fee and distributions to shareholders both in June and later this year.
Further details on the proposed USD35 million Capital Distribution will be announced in due course with expected timing to be early June 2016. ”
Based on this positive momentum with project disposals, the VinaLand Board believes it is now timely to commence dialogue with shareholders and is planning meetings with shareholders to discuss future strategic options including further distributions before convening the next EGM.
VOF Managing Director Andy Ho said, “Over the past few weeks, we’ve made great strides in reducing our direct investments in real estate and look forward to putting the proceeds to work in those asset classes and sectors where we see greater opportunities for significant growth.”
VNL / VOF : VinaLand and VinaCapital Vietnam Opportunities sell Danang Golf