28th Mar 2014 13:29
LONDON (Alliance News) - VinaLand Ltd Friday said that its net asset value fell in the first-half of the year.
VinaLand is an AIM-quoted investment vehicle focused on Vietnam?s emerging real estate market.
For the six months to December 31, 2013, the closed-end fund said that its net asset value fell to USD434.4 million, compared with USD446.8 million as at June 30, 2013.
It said its NAV per share in the first-half was USD0.91, down 2.2% when compared with USD0.93 for the prior six months. It said its share price increased 2.2% to close at USD0.4675 per share, from USD0.4575 per share.
"Notably, the company's share price has increased more than 10% further since December 31 2013. Factoring in these gains the current share price to NAV discount is now closer to 42%, a reduction from 51% at June 30 2013, but still unsatisfyingly high," the closed-end fund said.
VinaLand said that during the six month period it completed the divestment of three assets, resulting in net proceeds of USD9.0 million and a USD4.0 million reduction in its consolidated debt.
The closed-end fund said that in the first-half of the year the Vietnam property market showed signs of improvements, and therefore witnessed an increase in the number of enquiries from both local and foreign investors looking to re-enter Vietnam's real estate market.
"However, the level of non-performing loans in the banking sector continues to be a concern, hindering the ability of banks to provide loans to developers and residential buyers and thus tapering further improvements in the overall real estate market," it said.
VinaLand shares were trading 0.6% lower at USD0.523 per share Friday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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