VinaLand Limited, the real estate investment fund managed by VinaCapital, is preparing for its delisting on the London Stock Exchange’s Alternative Investment Market and ending its operation in the country in July.
VinaLand has so far sold all of its real estate projects in Vietnam and has returned substantially all available proceeds to shareholders, at $1.14 per share.
An annual general meeting was held on December 14, 2018 in a bid to obtain its shareholder voting to cancel the quotation of VinaLand’s ordinary shares from trading on the London Stock Exchange’s international market for smaller growing companies. It was however not passed at the time.
Consequently, the listing was not cancelled as proposed and VinaLand continues to be listed on the Alternative Investment Market while the company proceeds with the preliquidation process such as the wind up and striking off of remaining subsidiary companies.
The investment manager purchased 19,486,590 shares during the quarter, increasing its holdings to 49.62 per cent of the company’s total voting rights.
The Cayman Islands-domiciled fund was launched in Vietnam in 2006. Its investment portfolio was quite diverse, including commercial, residential and office buildings, hospitality, mixed-use segments and cash and short-term investments.
The period starting from 2016 could be the golden time for VinaLand to divest as the local real estate market started to warm up. Within two years from 2016 to 2018, VinaLand’s net asset value decreased from $391 million to $325,000.
In the last quarter of 2018, Vinaland completed disposal of the last two projects, the Green Park Estate and Garland.
The Green Park project consists of a total land area of approximately 15.7 hectares and was acquired in 2007, with the land designated for a future mixed-use development, while the Garland project had been built and sold all unit.
These disposals resulted in net proceeds of $36.2 million, which will be used to cover the fund’s final commitments, including operating and liquidation costs, and any funds available will be used to fund a final distribution to shareholders.
Last year, VinaLand divested of the hospitality development project 196HVT in Ho Chi Minh City and the small hotel SGPY project in Phu Yen. Both projects were acquired in 2008. These disposals resulted in net proceeds of $3.1 million.
In the second quarter of last year, the fund completed six project disposals, resulting in net proceeds of $115.1 million. Aqua City project and Pavilion Square project represented two significant transactions as they were two of the largest projects in VinaLand’s remaining portfolio.
Some of VinaLand’s significant divestments in the past years also included the 30-hectare Century 21 project in Nam Rach Chiec, Ho Chi Minh City to Novaland and the Danang Beach Resort Complex, which was sold for $37 million.