VinaCapital, one of internationally listed funds operating in Vietnam, looks for exit door
12-12-2012
But, it says the decision was not prompted by the collapse of the country’s real estate market.
“It is true that VinaCapital has a plan to sell its stakes in some projects such as the landmark Metropole Hanoi, Sheraton Nha Trang and Movenpick Saigon and several other residential developments,” said Andy Ho, managing director and head of investment at VinaCapital.
“However, please consider the movements as a normal business strategy.”
Ho continued: “Each six months, our assets would be revalued by independent firms such as Jones Lang LaSalle or Savills. Based on the revaluation, we would give the good prices for our partners if they would like to purchase. And after a long time holding the stakes in several projects, we would like to do our divestments and find new investment opportunities in the country.”
Ho’s comments reflected VinaCapital’s recent decisions to appoint Jones Lang LaSalle to market its 50 per cent stake in the 365-room, French colonial-era Metropole Hanoi and via Savills to sell all of its controlling stakes in Sheraton Nha Trang Hotel & Spa and Movenpick Saigon.
The three hotels are among the best known five-star hotels in Vietnam. Some investors have expressed concern that VinaLand, another London-listed fund investing in Vietnamese real estate projects managed by VinaCapital would be closed following the firm’s announcement last month that it would make no new investments and return all surplus cash to investors over the next three years.
“It is only the fund’s business strategy within three years,” Ho observed. “What will go on after the conclusion of this three-year cash return period would be voted by share-holders.”
The closed-ended fund VinaLand was established in 2006 and in September 30, 2012 the company has a portfolio of 36 assets with a total net asset value of $540.3 million.
In the near future, the fund plans to sell its entire stakes in 10 projects and a part of its stakes in a project.
The top property projects in VinaLand’s portfolio include Time Square Hanoi in the north, Danang Beach Resort, My Gia, World Trade Centre in the central region and Century 21, Pavillion Square, Dai Phuoc Lotus, VinaSquare, Aqua City, Trinity Park in the south.
Founded in 2003, VinaCapital is a leading asset management and real estate development firm in Vietnam, with a diversified portfolio of $1.6 billion in assets under management.
