Vinaland sells stake and partners Chow Tai Fook

Hong Kong's Chow Tai Fook is involved in property development, hotels, casinos, transportation, jewelry, port and telecommunications businesses. VNS

The transaction turned Vinaland from the largest shareholder of a project developing a mixed-use township incorporating homes, shops, leisure facilities and gaming over more than 100ha in the Chu Lai Economic Zone, become the strategic investor.

It also gives Chow Tai Fook, owned by Hong Kong's fourth richest person, Cheng Yu Tung, control of the project.

The Hong Kong enterprise will inject equity and expertise into developing and operating the large scale entertainment development in Quang Nam Province.

After Vinaland acquired the project in 2007, it firstly partnered Malaysia Genting, which contributed 20 per cent. However, the Malaysian partner withdrew from the project in 2012.

"Vinaland had completed initial investment in the project, however long term development would require significant future capital", said managing director of VinaCapital, David Blackhall.

Under the divestment, VinaLand has disposed its entire stake. This transaction, according to VinaCapital, will result in net proceeds of $10.5 million for VinaLand.

However, given the complexity of the project and the ongoing challenges it faces, the buyer has requested that VinaCapital continue to be involved in the project," VinaCapital said.

This led to Vinaland purchasing an additional stake of 9.36 per cent in the project. It will also receive an equity interest of 22.55 per cent in return for the transfer of certain economic rights to gaming it had secured.

In March, Quang Nam Province granted a new investment certification in the project for Chow Tai Fook, Vinaland and Macau's Sun City, which 70 per cent was bought by Chow Tai Fook's owner Cheng Yu Tung last year.

Chow Tai Fook is involved in property development, hotels, casinos, transportation, jewelry, port and telecommunications businesses.

In Viet Nam, it operates two large hotels in HCM City known as the New World and the Renaissance Riverside.

Hai Quan (Customs) newspaper reported that phase one of the project, including resorts, amusement park, golf course and premium villas and apartments, would start next year.