16 June 2011
Update on distribution policy
The Board of Directors ("the Board") of VinaLand Limited ("VNL" or "the Company"), an investment company focused on Vietnam's real estate sector, provides today an update on the distribution policy announced to shareholders on 28 October 2010.
The distribution policy as announced 28 October 2010 stated that approximately 50 percent of cash generated from divestments, after providing for tax and investment commitments, will be distributed to shareholders of the Company.
The Board intended to make the first distribution following finalisation of the interim financial statements for the six months ended 31 December 2010. However, there was not sufficient cash available from divestments to warrant a distribution payment at that time. The Investment Manager is currently finalising several divestments that, upon completion of those transactions and the receipt of funds at the offshore fund level, should allow for a distribution to take place.
The Chairman of the Company, Mr. Nicholas Brooke, said: "VNL continues to make satisfactory progress in developing its assets and exiting mature holdings or those that do not fit the current strategy of the fund. Unfortunately, the current macro-economic climate in Vietnam is very challenging and receipt of payments on several divestments has been delayed, preventing us from completing a distribution in the first half of 2011. The Board continue to review the optimal method for returning capital, in consultation with shareholders, with a view to maximising value.”
VNL continues to benefit from ongoing sales at residential township developments in Danang, Nha Trang and Ho Chi Minh City.
“VNL’s progress with residential sales is highlighted by the recent success of the Danang Beach Resort in winning the Bloomberg-sponsored Asia Pacific Property Awards. Our residential sales brand, VinaLiving, is establishing itself as a mark of quality and value across Vietnam. We remain excited by the prospects of the fund and its ability to generate long-term returns for shareholders,” Mr. Brooke said.
This news release may contain statements that constitute forward-looking statements that include but are not limited to statements regarding the expected income generated from the divestment of real estate assets owned by funds managed by VinaCapital Group (“the Group”). Undue reliance should not be placed on forward-looking statements. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Group and described in the forward-looking statements. These risks and uncertainties include but are not limited to delays in receipt of payments, and unforeseen changes to general economic and business conditions. Forward-looking statements are based on the estimates and opinions of the Group’s management at the time the statements are made. The Group assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.
Notes to Editors:
VinaCapital is the leading investment management and real estate development firm in Vietnam, with a diversified portfolio of USD1.7 billion in assets under management. VinaCapital was founded in 2003 and boasts a team of managing directors who bring extensive international finance and investment experience to the firm. Our mission is to produce superior returns for investors by using our experience and knowledge to identify the key trends and opportunities that emerge as Vietnam continues to develop its economy. To achieve this, VinaCapital has industry-leading asset class teams covering capital markets, private equity, fixed income, venture capital, real estate and infrastructure.
VinaCapital manages three closed-end funds trading on the AIM Market of the London Stock Exchange. These funds are: VinaCapital Vietnam Opportunity Fund Limited (VOF), VinaLand Limited (VNL), and Vietnam Infrastructure Limited (VNI). VinaCapital also co-manages the USD32 million DFJ VinaCapital L.P. technology venture capital fund with Draper Fisher Jurvetson.
VinaCapital has offices in Ho Chi Minh City, Hanoi, Danang, Nha Trang, Phnom Penh (Cambodia) and Singapore. More information about VinaCapital is available at www.vinacapital.com.
More information on VOF is available at www.vinacapital.com/vnl.
Michael L. Gray
VinaCapital Investment Management Limited
+84 8 821 9930
Grant Thornton Corporate Finance, Nominated Adviser
+44 20 7383 5100
LCF Edmond de Rothschild Securities, Broker
+44 20 7845 5960
David Benda / Hugh Jonathan
Numis Securities Limited
+44 (0)20 7260 1000
Financial Dynamics, Public Relations (Hong Kong)
+852 3716 9802
Financial Dynamics, Public Relations (London)
+44 20 7269 7204