VinaLand will hand back $54m after another housing project sold – VinaLand Limited will make a distribution of USD0.33 per ordinary share. The distribution of approximately USD53.9 million in total will be returned equally to all shareholders, the pay date is Thursday 28 June 2018.
Sale of Aqua City Project
In addition, VinaLand has announced the sale of its stake in the Aqua City project, located in Dong Nai province, Vietnam. The project consists of a total land area of approximately 112ha and was acquired by VinaLand in 2008, with the land designated for future residential development. VinaLand is divesting its entire stake in the project to Bach Kim Real Estate Company Limited for net cash proceeds of USD45.2 million which includes the repayment of shareholder loans, resulting in an IRR of -1.6% to the company. The total valuation is recorded at 20.5% above the 31 Mar 2018 unaudited net asset value, and 57.6% above the unaudited net asset value at the time of VNL’s extraordinary meeting in November 2016 (when the fund was put into realisation mode), both figures include adjustments for additional investments up to the date of exit. At the time of this announcement, USD40.5 million or 89.6% of the net proceeds have been received by the company, and it is expected that all proceeds will be received by the end of June 2018.
Speaking on the transaction, Managing Director David Blackhall stated, “This divestment is in accordance with the current stated policy to divest projects in a controlled and orderly manner, and good progress has been made with the closure of several disposals during 2018. The proceeds received from this disposal will, in conjunction with those collected from recent disposals will be used to cover VNL’s commitments including operating costs, capital contributions and further distributions to shareholders.”
VNL : VinaLand will hand back $54m after another housing project sold