Vinaland ZDP Ltd Divestment of stake in the Century 21 Project (8201X)
11 Maggio 2016 - 8:00AM
UK Regulatory
TIDMVNLZ
RNS Number : 8201X
Vinaland ZDP Ltd
11 May 2016
11 May 2016
VinaLand ZDP Ltd
Divestment of stake in the Century 21 Project
VinaLand ZDP Ltd, admitted to the main market of the London
Stock Exchange, announces that today its parent company VinaLand
Limited ("VNL") made the following announcement:
Ho Chi Minh City - VinaLand Limited, the AIM-quoted investment
vehicle established to target strategic segments within Vietnam's
emerging real estate market, announces that it is divesting its
entire stake 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 by VNL 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 will dispose of its entire stake in the Century 21 Project
to Khai Hung Real Estate Co. Ltd, 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. The 21st Century
International Development Joint Stock Company became an associate
of the Company on 30 June 2015. As at year end, the Company's share
of Century 21's net assets approximated the carrying value of the
Company's investment in this associate. Therefore there are no
separate profits or losses attributable to the asset. This
transaction will result in net cash proceeds of USD75.4 million to
VNL. At the time of this announcement the proceeds have been fully
received. 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.
Speaking on the transaction, Managing Director, David Blackhall
stated, "The closure of this transaction which is the largest
project in the portfolio is consistent with the Company's strategy
agreed at the EGM in November 2015, where shareholders supported an
extension of up to 12 months to continue with the strategy focused
on the realisation of assets as agreed at the November 2012 EGM.
This disposal was approved by the Board prior to 21 November 2015,
and due to its size will certainly assist in achieving the
Company's 2016 objectives. The proceeds will be used to cover VNL's
commitments including operating costs, provision for the ZDP
facility and distributions to shareholders. The Board is planning
to update shareholders on VNL progress which will include meetings
in Europe during the week commencing 6 June 2016, more details to
follow."
Enquiries:
Jeremy Greenberg
VinaCapital Investment Management Limited
Investor Relations
+84 8 3821 9930
jeremy.greenberg@vinacapital.com
Joel Weiden
VinaCapital Investment Management Limited
Communications
+84 8 3821 9930
joel.weiden@vinacapital.com
Philip Secrett
Grant Thornton UK LLP, Nominated Adviser
+44 (0)20 7383 5100
philip.j.secrett@uk.gt.com
David Benda / Hugh Jonathan
Numis Securities Limited, Broker
+44 (0)20 7260 1000
funds@numis.com
Daniel Jason
Peregrine Communications, Public Relations (London)
+44 (0) 20 3040 0872
daniel.jason@peregrinecommunications.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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May 11, 2016 02:00 ET (06:00 GMT)
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