VinaCapital again Exits Real Estate Project in HCM City

Tuan Minh

21:47 10/09/2017

BizLIVE - The divestment is in accordance with the company’s current policy to divest projects in a controlled and orderly manner.

VinaCapital again Exits Real Estate Project in HCM City

A perspective view of the Vina Square project. Photo: skyscrapercity.com

VinaLand Limited (VNL), the real estate investment vehicle of Vietnam-based asset management company VinaCapital, has announced that it is divesting its stake in the Vina Square project to a Vietnamese development company for net cash proceeds of $41.2 million.
The project consists of a total land area of three hectares in Ho Chi Minh City’s District 5 and was acquired by VNL in 2007, at which time the land was designated as a future development site.
In 2008, VinaCapital established Vina Alliances Company, with a registered capital of $55 million where VinaCapital held a 62% stake, to develop the project at a cost of $210 million. It was poised to provide retail space, offices and over 1,000 apartments.
The divestment resulted in an IRR of 3.3% to VNL. The total valuation is recorded at 0.3% above the June 30, 2017 unaudited net asset value and 13.5% above the unaudited net asset value at the time of VNL's extraordinary meeting in November 2016.
VNL added that $41.0 million or 99.5% of the net proceeds have been received and the remainder will be received by the end of this month.  
“This divestment is in accordance with the current stated policy to divest projects in a controlled and orderly manner, and steady progress has been made with further pipeline disposals,” said VNL’s Managing Director David Blackhall.
Since the start of this year, VNL has sold stakes in a series of real estate projects such as My Gia Township and Dai Phuoc Lotus in southern Vietnam and the stalled Times Square in Hanoi, for a total of $112 million in proceeds.
As of end-June 2017, VNL had 14 assets with a combined $244 million in net asset value. It is still holding stakes in Pavilion Square, Trinity Garden and Green Park projects in HCM City; Aqua City and Phu Hoi City in Dong Nai province; and Capital Square in Da Nang.

TUAN MINH