VinaCapital Vietnam Opportunity Fund and VinaLand have sold their entire stakes in the Dai Phuc Lotus direct real estate project located in the Dong Nai province near Ho Chi Minh City, Vietnam. The site is a future residential – township development with a total site area of 198.5ha and was acquired in 2007. The Project is residential development and is split into 6 zones. The project is currently undergoing its first phase in construction and sales.
The funds sold their stakes in the Dai Phuoc Lotus project to China Fortune Land Development Co., Ltd group at a total valuation of 20.4% above the 31 March 2017 unaudited net asset value for VOF and 11.2% above the 31 December 2016 audited net asset value for VNL. This transaction will result in net cash proceeds of USD16.5 million to VOF and USD48.8million to VNL. The proceeds have been fully received at the time of this announcement. As a result of the sale, VOF’s holding in direct real estate development projects has been reduced to 5.2% of total NAV as of 31 March 2017.
VOF Managing Director Andy Ho commented, “With the closure of this divestment, VOF’s exposure to direct real estate falls to approximately 5% of total NAV. This is a significant milestone in the Company’s ongoing strategy to reduce direct real estate holdings, and enables VOF to remain opportunistic in areas of the market where we see significant upside, namely privately negotiated deals and OTC investments.”
VNL Managing Director David Blackhall stated, “This disposal is in accordance with the current stated policy to divest projects in a controlled and orderly manner, the proceeds received from this exit in conjunction with those collected from past and future disposals will be used to cover VNL’s commitments including operating costs and distributions to shareholders.”
VOF / VNL : VinaCapital funds sell Dai Phuoc Lotus stake