VNL cashes in on development site

NPV Project is a future development site and was acquired by VNL in 2007 to develop into a dual purpose commercial and residential project.

VNL will dispose of its entire 100 per cent stake in the NPV Project at a total valuation 29.4 per cent higher than the 30 September 2015 unaudited net asset value and 51.7 per cent above the net asset value at the time of VNL's extraordinary meeting (EGM) in November 2012.

VNL said that the divestment is consistent with the company's streamlining strategy to strip selected assets by the end of the current term.

The company's stake in the project will net them net proceeds of $19.1 million, of which the first $15.8 million tranche will be received during October 2015, with the second and final payments being scheduled for no later than the longstop date of 31 October next year.

VNL’s managing director, David Blackhall stated, "The closure of this transaction marks the twelfth full exit since VNL's EGM in November 2012 and is consistent with the Company's commitment to the strategy agreed upon at the EGM, whereby shareholders agreed to a new three-year term which included a revised strategy focused on the realisation of assets.

The proceeds of this most recent transaction will be deployed to cover the capital commitments and operating costs of VNL with the remaining funds to be distributed among shareholders."

As of the end of March this year, VNL has also sold its 15 per cent stake in Saigon Quy Nhon Tourism JSC, the owner of SGT Quy Nhon Hotel in the central province of Binh Dinh.

VinaLand said the sale, done at a valuation 27.3 per cent above the unaudited net asset value of the investment at the end of December, has generated them net proceeds of $630,000. The investor acquired the 4-star, 148-room hotel in 2008 and stated that the divestment is in line with its wider asset disposal strategy.