11th May 2016 09:11
LONDON (Alliance News) - VinaLand Ltd on Wednesday said it has sold its stake in its largest project, the Century 21 project, to Khai Hung Real Estate Co Ltd for net cash proceeds of USD75.4 million.
The Vietnam-focused real estate investor said it sold its stake in the mixed use development project, located in Ho Chi Minh City, Vietnam due to the "large size of the project coupled with the requirement for the company to contribute additional capital and debt upon commencing the development the project was divested".
VinaLand sold the stake at a total valuation approximately equal to the March 31 unaudited net asset value and 19% above the net asset value at the time of its previous extraordinary meeting in November 2012, including adjustments for additional investments over this period.
VinaLand said it had received the total cash proceeds of USD75.4 million, and said it intends to return USD35.0 million to shareholders by way of a capital distribution in June, with further distributions to follow.
"This disposal was approved by the board prior to November 21, and due to its size will certainly assist in achieving the company's 2016 objectives. The proceeds will be used to cover VinaLand's commitments including operating costs, provision for the ZDP facility and distributions to shareholders," said Managing Director David Blackhall.
Shares in VinaLand were up 1.3% at USD0.671 on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
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