Vinaland plans distribution as sells Vina Square project
Vinaland plans distribution as sells Vina Square project – Vinaland is selling its stake in the Vina Square project, located in Ho Chi Minh City, Vietnam. The project consists of a total land area of approximately 3.0ha and was acquired by VNL in 2007, at which time the land was designated as a future development site. VNL is divesting its entire stake in the Project to Tri Duc Real Estate Company Limited, a Vietnamese development company, for net cash proceeds of approximately USD41.2 million. This includes the repayment of shareholder loans, resulting in an IRR of 3.3% to the fund. The total valuation is recorded at 0.3% above the 30 June 2017 unaudited net asset value and 13.5% above the unaudited net asset value at the time of VNL’s extraordinary meeting in November 2016, both figures include adjustments for additional investments up to the date of exit. At the time of this announcement, USD41.0 million or 99.5% of the net proceeds have been received. It is expected that all proceeds will be received by the end of this month.
Vinaland will also conduct a distribution of up to USD60 million to shareholders through a tender offer. The tender offer is offered to all shareholders on the register at 6:00 pm UK time on 15 September 2017
Speaking on the transaction, Managing Director David Blackhall stated, “This Tender Offer follows the announcement today of the Vina Square disposal, for which all proceeds will be received in September enabling further distributions to shareholders during October 2017. This divestment is in accordance with the current stated policy to divest projects in a controlled and orderly manner, and steady progress has been made with further pipeline disposals. The proceeds received from this disposal will, in conjunction with collections from earlier disposals including prepayment advances for future pipeline disposals will be used to cover VNL’s commitments including operating costs, capital contributions and further distributions to shareholders.”
VNL : Vinaland plans distribution as sells Vina Square project