» » VinaLand aims to make cash distribution

VNRE - VinaLand, an investment company focused on Vietnam's real estate sector, has 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 company 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.

Source: StockMarketWire.com

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