Photo: Dai Phuoc Lotus project
Two exit from investments in residential - township development in Dong Nai province.
The VinaCapital Vietnam Opportunity Fund Limited (VOF), a London Stock Exchange Main Market traded investment company established to target key growth segments in Vietnam, and VinaLand Limited (VNL), a closed-end fund trading on the London Stock Exchange’s Alternative Investment Market (AIM), have announced their full divestment from the Dai Phuoc Lotus real estate project in southern Dong Nai province.
The site is a future residential - township development with a total site area of 198.5 ha and was acquired in 2007. The project is currently undergoing its first phase of construction and sales.
VOF and VNL disposed of their entire stake in the project to a company within the China Fortune Land Development Co., Ltd for net cash proceeds of approximately $48.8million, resulting of an IRR of -3.0 per cent.
“With the closure of the divestment, VOF’s exposure to direct real estate falls to approximately 5 per cent of total NAV,” said VOF Managing Director Andy Ho. “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.”
The project is a residential development and split into six zones. It is currently undergoing its first phase of construction and sales in one zone, with a further zone having received master plan approval for development.
VinaLand Limited invests in key growth segments within Vietnam’s emerging real estate market, including residential, office, retail, hospitality and township projects. Its objective is to provide shareholders with an attractive level of income as well as creating potential for capital growth.