Divestment of Green Park Estate Project

RNS Number : 6563H

VinaCapital Vietnam Opp. Fund Ltd

16 November 2018

 

VinaCapital Vietnam Opportunity Fund Limited

(the "Company" or "VOF")

LEI Number: 2138007UD8FBBVAX9469

Divestment of Green Park Estate Project - 16 November 2018

Ho Chi Minh City - VinaCapital Vietnam Opportunity Fund Limited (LSE: VOF), the flagship fund of VinaCapital (the "Manager"), announces that it is divesting its stake in the Green Park Estate project (the "Project"), located in Ho Chi Minh City, Vietnam.

The Project consists of a total land area of approximately 15.7ha and was acquired by VOF in 2007, with the land designated for a future mix-use development. VOF is divesting its entire stake in the Project to a domestic investor for net cash proceeds of approximately USD18.9 million, which includes the repayment of shareholder loans. The net cash proceeds are in line with the 30 June 2018 audited net asset value.

Speaking on the transaction, Managing Director Andy Ho stated, "The divestment of Green Park Estate project is in accordance with our strategy to reduce the direct real estate ("DRE") exposure in the portfolio in a controlled and orderly manner. With this divestment, VOF will effectively have zero exposure to DRE.

In terms of investments, given current market volatility and threats of global trade wars, we are finding more attractive opportunities in private equity and privately negotiated deals in sectors that benefit from Vietnam's robust domestic consumption and its consumers' rising incomes and standards of living. With the proceeds from this divestment and available cash, the fund is in a position of strength to take advantage of several investment opportunities that we expect to deliver attractive returns over the long-term for our shareholders.

Furthermore, in late October 2018 the Company announced that it will be distributing a dividend to shareholders of 5.5 US cents per share, with payment date on or around 30 November 2018 (record date 2 November 2018).

Finally, the Company recently gave Notice of its Annual General Meeting ("AGM") to be held on 10 December 2018, setting out, among the resolutions details of the recommended proposals for the continuation of the fund. We recommend that shareholders participate in the AGM vote and support all of the Board's recommendations with regards to the resolutions proposed.

About VinaCapital

Founded in 2003, VinaCapital is a leading investment and asset management firm headquartered in Vietnam, with a diversified portfolio of USD1.8 billion in assets under management. The firm has two closed-ended funds that trade on the London Stock Exchange: the VinaCapital Vietnam Opportunity Fund Limited, which trades on the Main Market, and VinaLand Limited which trades on the AIM. VinaCapital also manages the Forum One - VCG Partners Vietnam Fund, one of Vietnam's largest open-ended UCITS-compliant funds, the Vietnam Equity Special Access Fund, numerous segregated accounts, and two domestic funds. VinaCapital also has joint ventures with Draper Fisher Jurvetson in venture capital, and Warburg Pincus in hospitality and lodging. VinaCapital's expertise spans a full range of asset classes including capital markets, private equity, real estate, venture capital, and fixed income.

VOF is managed by VinaCapital Fund Management Limited, an entity managed and regulated in Vietnam by the State Securities Commission of Vietnam, a member of the International Organization of Securities Commissions.

Enquiries:

Michael Truong / Joel Weiden
Investment Manager - Investor Relations and Communications VinaCapital Investment Management Limited
T: [phone]
E: [e-mail] E: [e-mail]
David Benda / Hugh Jonathan
Broker Numis Securities Limited
T: [phone]
E: [e-mail]
Jacques Colley
Company Secretary / Administrator Aztec Financial Services (Guernsey) Limited
T: [phone]
E: [e-mail]
Edward Gascoigne-Pees
Public Relations (London) Camarco
T: [phone]
E: [e-mail]
David Harris
Marketing and Distribution (London) Frostrow Capital LLP
T: [phone]
E: [e-mail]

1.     References to VOF or the Company in this announcement shall mean VinaCapital Vietnam Opportunity Fund Limited, a non-cellular company incorporated in the Bailiwick of Guernsey under The Companies (Guernsey) Law, 2008, with registered number 61765. It is authorised by the Guernsey Financial Services Commission (reference number 2268242) as a registered closed-ended investment scheme under The Protection of Investors (Bailiwick of Guernsey) Law, 1987 and in compliance with the Registered Collective Investment Scheme Rules, as amended.

2.     The registered office address of the Company is East Wing, Trafalgar Court, Les Banques, St Peter Port, Guernsey, Channel Islands, GY1 3PP.

3.     This announcement may contain inside information as stipulated under the Market Abuse Regulations (EU) NO. 596/2014 (MAR).

 

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