20th May 2016 07:24
LONDON (Alliance News) - VinaLand Ltd on Friday said it was selling its stake in the Danang Golf project to An Phu Import Export Investment and Trading Co Ltd for net cash proceeds of USD37.4 million, as it said it was planning meetings with shareholders to discuss its future strategic options.
Earlier this month, the Vietnam-focused real estate investor sold its stake in its largest project for cash proceeds of USD75.4 million, and said on Friday that both sales were consistent with its strategy focused on the realisation of assets.
VinaLand said it was disposing of the stake at a total valuation 0.2% below the March 31 unaudited net asset value and 6.7% below the net asset value of the project in November 2012. The company said it will receive USD37.4 million for the stake, and an internal rate of return of 8.9%.
VinaLand said it had received USD34.1 million of the total proceeds so far, with the remaining sum expected to be received no later than June.
The Danang Golf project is situated in Danang and includes a completed 18-hole golf course with related facilities and residential dwellings. The site also has an approved master plan for future development.
"The combined proceeds will be used to cover VinaLand's commitments including operating costs, provision for the ZDP facility, accrued performance fee and distributions to shareholders both in June and later this year," said Managing Director David Blackhall.
"Based on this positive momentum with project disposals, the board believes it is now timely to commence dialogue with shareholders and is planning meetings with shareholders to discuss future strategic options including further distributions before convening the next extraordinary general meeting," Blackhall added.
Shares in VinaLand were down 0.7% at USD0.670 on Friday.
By Hannah Boland; [email protected]; @Hannaheboland
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