VinaLand Debuts on London Stock Exchange (AIM)

Steering committee of VinaLand and LSE managers at the first trading session. (Photo: T.C)

VinaLand (ticker VNL), a US$205 million fund dedicated to real estate opportunities in Vietnam, today made its debut on Alternative Investment Market (AIM) of the London Stock Exchange (LSE). The fund issued 204,844,779 new ordinary shares at US$1.00 per share, becoming the first publicly traded fund dedicated to property development and investment in Viet Nam.

"We are pleased to have listed on the AIM Viet Nam’s first publicly traded property fund. With the country making great strides in terms of growth and legal reform, we believe that now is the time to capture the real estate opportunities afforded by such progress," stated Horst Geicke, Chairman of VNL and Chairman and Co-founder of VinaCapital, the fund’s investment management company. “One day after the listing on LSE, the share price has increased by 18 percent, indicating both the strong demand and the confidence of investors on the fund”, Horst Geicke added.

The fund was over six times over-subscribed. “We are immensely pleased with the overwhelming response to our new property fund,” said Don Lam, Managing Partner and Co-founder of VinaCapital. “We received subscriptions from both investors in our first fund who have seen the demonstrated results of VinaCapital’s disciplined investment approach, as well as new investors, who believe in the real estate potential of Viet Nam’s robustly growing economy.”

VinaLand get listing certificate. (Photo: T.C)

VNL will invest in five property sectors: office, retail, residential, industrial and leisure. The fund’s primary focus will be Ho Chi Minh City, with a secondary focus on Ha Noi and key leisure areas, including Nha Trang, Hoi An, and Da Nang.

“There is enormous latent demand for property across all sectors. The country’s economic growth has given rise to a burgeoning urban middle class with an increased amount of disposable income, putting pressure not only on middle-class residential housing but also limited retail space,” said Peter Dinning, Managing Director of VinaCapital’s real estate arm. “In addition, Viet Nam’s increased international exposure is resulting in an influx of tourists, multinational corporations, and manufacturing companies looking for an alternative manufacturing hub. The result is pressure on a limited supply of hotel rooms, office space, and industrial zone space.”

“The timing is right for the launch of a fund dedicated to real estate opportunities in Viet Nam. The economic, legal and demographic changes occurring now in Viet Nam are similar to those that fueled the explosive growth of China’s real estate market which began in the late 1990s. In the case of both China and Viet Nam, we’re looking at the same growth factors: increased disposable income, urbanization, availability of mortgages, and a series of financial, regulatory, and legal reforms spurred by impending WTO accession,” continued Dinning.

About VinaCapital

VinaCapital Group manages the Viet Nam Opportunity Fund (VOF), a closed-end fund listed on the AIM with a market capitalization of US$300 million. Since the Fund’s inception in September 2003, VOF has achieved attractive risk-adjusted returns through investments in private equity, the listed and OTC markets, privatization of state owned enterprises, and select property developments throughout Viet Nam. VinaCapital organized Viet Nam’s first international investor conference in December of last year.

VOF performance at a glance

 Highest returns since inception of all funds in Viet Nam (to February 28, 2006): NAV/Share +71%; Share Price +141%.
 Most consistent returns of all funds in Viet Nam
 Highest Liquidity of all funds in Viet Nam
 2004: Best performing fund in Viet Nam, per Rothschild Research
 2005: NAV/Share +34% y/y; Share Price +35% y/y; Average Monthly Increase +2.5%; Standard Deviation Monthly Increase 2.1%; No Months Down
 2006 YTD: NAV/Share +11%; Share Price +37%
(notes: NAV = net asset value; YTD = year to date; y/y = average of year )

VinaCapital also acts as the South East Asia office for its sister company, Pacific Alliance Group (PAG), which manages over US$400 million in different pan-Asian funds.

Related Articles:
New Wave of Foreign Indirect Investment Flows into Viet Nam
Deputy PM Vu Khoan: Viet Nam will pursue more open-up policies and transparent legal system
Ho Chi Minh City Launches New Investment Fund VinaLand
Viet Nam Securities Investment Fund to take investment opportunities

Related Links:
VinaCapital
London Stock Exchange (LSE)

Reported by Tuong Chau

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