VinaLand divests from series of real estate projects to gain nearly $120 million

VinaLand Limited (VNL) has recently announced that it disposed of its entire stake in both the 196HVT project and the SGPY project. The 196HVT site, which was approved for a future hospitality development, is in Ho Chi Minh City and the SGPY project is a small operating hotel located in Phu Yen province. Both projects were acquired by VNL in 2008.

These transactions resulted in net cash proceeds of $2.8 million and $0.3 million respectively to VNL. 

Speaking on the transaction, VNL's managing director David Blackhall stated that both of these disposals were in accordance with the current strategy to divest projects in a controlled and orderly manner.

The VNL's quarterly report released on June 30th, 2018 shows that within the second quarter of this year, the company had divested from six other real estate projects, resulting in net proceeds of $115.1 million. 

Specifically, on April 9th, VNL announced the divestment of Capital Square and Long Truong projects acquired in 2006 and 2008, respectively. The Capital Square project located in Danang was approved for future mixed-use development; while the Long Truong project located in Ho Chi Minh City was earmarked for future residential development. These transactions resulted in combined net proceeds of $25.7 million to VNL. 

On May 11th, VNL announced the disposal of Pavilion Square project located in Ho Chi Minh City. The project, acquired by VNL in 2007, was designated for a future mixed-use development. This transaction resulted in net proceeds of $36.9 million to VNL. 

In the same month, the disposal of the Romana Resort and Spa project was announced. The project is a small operating hotel with 96 keys and is located in Binh Thuan Province. VNL acquired this project in 2008. VNL’s disposal of its entire stake in the project resulted in net proceeds of $4.8 million.

Then on June 4th, the divestment of SDC project located in Ho Chi Minh City was completed. This project, acquired by VNL in 2007, was designated for a commercial use development. This transaction has resulted in net proceeds of $2.5 million to VNL. 

Finally, the divestment of VNL from Aqua City project was announced on 13 June 2018. The project, acquired by VNL in 2008, is situated in Dong Nai province on 112 hectares of land with the land designated for future residential development. VNL divested its entire stake in the project with net proceeds of $45.2 million. 

Of the six above-mentioned deals, Aqua City project and Pavilion Square project represented two significant transactions as they were two of the largest projects in VNL’s remaining portfolio.

Previously, in the second quarter and third quarter of last year, VNL also continuously withdrew from a series of real estate projects in Ho Chi Minh City, Nha Trang, and Dong Nai, gaining about $112 million in net cash proceeds.