Vinaland and VinaCapital Vietnam Opportunities (VOF) are selling their entire stakes in the 21(st) Century International Development Joint Stock Company (Century 21 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 which was acquired in 2006 for development into a residential and mixed use complex. Significant work was undertaken during this period in relation to master planning, re-structuring and approvals and due to the large size of the project coupled with the requirement for the Company to contribute additional capital and debt upon commencing the development the project was divested.
VNL and VOF will dispose of their entire stakes in the Century 21 Project to Khai Hung Real Estate Co. Ltd. For Vinaland the deal was done at a total valuation approximately equal to the 31 March 2016 unaudited net asset value and 18.5% above 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 USD75.4 million to VNL and $28.7 million to VOF. At the time of this announcement the proceeds have been fully received.
Vinaland say, in accordance with the previously stated policy, following this disposal and in conjunction with the collection of proceeds from further disposals, the intention is to return USD35 million by way of a Capital Distribution and set aside funds to repay the ZDP facility and also pay part of the accrued performance fee to the Manager that will be triggered upon this distribution to shareholders. Such Capital Distribution to take place by early June 2016, with further distributions to follow during 2016.
VinaCapital Vietnam Opportunities say the transaction is at a value approximately USD3.2 million higher than the 31 March 2016 unaudited net asset value. 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.
VNL / VOF : Vinaland and VOF sell Century 21 stakes