VinaLand divests from Vietnam-based Vung Bau project

Visual from VinaLand's website

VinaLand Ltd, which is VinaCapital‘s Cayman Island incorporated real estate investment fund, divested its 55 per cent stake in the Vung Bau project, this month. The project is located in Phu Quoc island in the southern Kien Giang province of Vietnam.

The project site was acquired by the London Stock Exchange listed investment vehicle in 2008. “However, due to market conditions, the company did not proceed with the originally intended development,” it said in a recent report.

The divestment of this parcel of land is consistent with the limited liability fund’s strategy to divest from a number of projects by the end of the current term.

As a result of the transaction, VinaLand sold its entire 55 per cent holding in the project, at a valuation 2.9 per cent above the unaudited 31 December 2014 net asset value (NAV) of the investment, and 1.6 per cent above the NAV at the time of VinaLand’s extraordinary meeting in November 2012, when its shareholders agreed to extend a three year term to implement the divestment (while executing no new deals).

This transaction has resulted in net proceeds of $4.7 million for the company, which said that it has collected the money. A par of this fund will be used to cover capital commitments and operating costs, while the remaining will be deployed towards a share buyback program, said the company

Also read: VinaCapital’s real estate fund sells 15% in Sai Gon Quy Nhon

“Entering the final year of the three-year cash return period, which began after extraordinary general meeting held on 21 November 2012, the board and the investment manager remain committed to divesting assets and returning capital to shareholders,” VinaLand chairman Michel Casselman wrote in statement last month.

He added that sourcing buyers for the fund’s assets remained challenging despite some improvement in the Vietnamese real estate sector. “Subsequently we are currently behind our divestment target and are using all the resources available to us to close some larger transactions between now and the end of 2015.”

VinaLand was established with a primary objective to focus on key growth segments of residential, office, retail, industrial and leisure real estate projects in Vietnam and the surrounding countries in Asia.

VinaCapital, the mother company of VinaLand, possesses a diversified portfolio of $1.5 billion in assets under management. Along with VinaLand, its is operating two other funds that are traded on the London Stock Exchange’s Alternative Invesement Market: the Vietnam Opportunity Fund Ltd and the Vietnam Infrastructure Ltd.

VinaCapital is also co-managing the $32 million DFJ VinaCapital LP technology venture capital fund with the US-based venture firm Draper Fisher Jurvetson.

Related stories:

Cotec Land divests from units to restructure debts

VinaCapital boosts F&B investments, to buy Quang Ngai Sugar?

VNI converts to open-ended fund

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.