20th Jan 2014 12:47
LONDON (Alliance News) - VinaLand Ltd, the AIM-quoted investment vehicle which targets Vietnam's emerging real estate market, said Monday that it has divested its stake in Vina Properties Pte Ltd, which owns a 5-star hotel located in Ho Chi Minh City.
VinaLand acquired the hotel in 2007, and it was refurbished in 2010 to capitalise on the fast growing tourism business in Ho Chi Minh City.
The group said that since the reopening of the hotel, the four to five star hotel segments in Ho Chi Minh City have experienced significant increases in room supply, which has affected the hotel's performance.
The company's stake in the project resulted in net proceeds of USD16.1 million, which is 19% above the net asset value at December 31.
As a result of the divestment, its debt from the consolidated balance sheet has also been reduced by USD1.7 million.
"This divestment is consistent with the Company's strategy to divest hospitality assets over the next two years. The proceeds will be utilised to fund future distributions to shareholders and ongoing operating costs," said Managing Director David Blackhall in a statement.
Shares in VinaLand were up 3.3% Monday afternoon, trading at 0.509 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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