VinaCapital fully divests Time Square Hanoi
VinaCapital fully divests Time Square Hanoi
VinaLand Limited, the real estate investment arm of Ho Chi Minh City-based private equity firm VinaCapital, has found a partner to transfer the right to develop the $50-million Times Square Hanoi, which has been on offer since 2015.
In a recently released statement, VinaLand announced that it has divested its entire stake in the Times Square project, for net cash proceeds of approximately $41 million, resulting in an IRR of 5.3 per cent.
The project consists of a total land area of approximately 4.0 hectares and was acquired by VinaLand in 2007, at which time the land was designated as a future development site.
The buyer of the project is Elite Capital Resources Limited.
In conjunction with the announcement of the divestment, VinaLand said it will conduct a distribution of $40 million to shareholders through a tender offer to purchase ordinary shares of the company.
“This tender offer follows today’s announcement of the Times Square disposal which, in conjunction with several other exits, will enable shareholder distribution to continue in various forms, including share buybacks and tenders, and is a good outcome for shareholders as we continue to maximise shareholder value,” said VinaLand managing director David Blackhall.
VinaLand also stated that its total valuation is 20.4 per cent above the March 31, 2016 un-audited net asset value, and 48.1 per cent above the unaudited net asset value at the time of VinaLand’s extraordinary meeting in November 2016. Both figures include adjustments for additional investments up to the date of exit.
At the time of this announcement, $17 million, or 41.5 per cent of the net proceeds, have been received by VinaLand with the remainder subject to precedent conditions expected to be satisfied by no later than July 2017.
Located in the emerging business district of the capital, Times Square Hanoi is a 65-35 joint venture between VinaCapital and Thang Long GTC, a unit under state-owned hospitality group Hanoi Tourist.
The planned mixed-use project has a committed investment capital of $50 million and broke ground in 2008. However, the development has been abandoned since then.
The project expected to provide a complex of 20,000 square metres of high-end office space for lease, a 300-room five-star hotel, and a trading centre.
Recently, VinaLand and Vietnam Opportunity Fund Limited (VOF), both under VinaCapital, have been exiting from a range of real estate projects.
Right last month, VinaLand divested its entire stakes at Dai Phuoc Lotus, a residential complex in Dong Nai province, to China Fortune Land Development and earned about $65.3 million. Dai Phuoc Lotus consists of 332 high-end semi-detached and detached villas. Around 200 villas of the first phase have been handed over to buyers.
