VinaCapital funds back out of real estate to focus on unlisted, OTC firms

By Dam Tuan May 18, 2016 | 02:34 am PT

VinaCapital has updated its investment portfolio in two funds by divesting its entire stake in 21st Century International Development Company for $28.7 million and turning its attention to unlisted and over the counter (OTC) companies.

The country's leading asset management fund offloaded its stake in 21st Century to Khai Hung Real Estate Ltd to reduce its portfolio investment in real estate to under 10 percent, according to thoibaonganhang.vn.

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VinaCapital is focusing on Vietnam's OTC and unlisted companies. Photo by Sunwah&Friend Group

This deal involves the Vietnam Opportunity Fund (VOF) and VinaLand Limited (VNL), which are both managed by Vinacapital. VinaCapital earned $28.7 million from the deal, $3.2 million more than the book value as of the end of March.

At the end of the 2015 fiscal year, VOF's investment portfolio included 52.4 percent of net asset value in listed stickers, 13.8 percent in real estate projects, 11.3 percent in private enterprises, 11.4 percent in a hotel project and the remaining of 4.9 percent in OTC companies.

VOF CEO Andy Ho said that the reducing real estate investment to 8.4 percent was a crucial milestone in their strategy to gradually divest from this sector in order to focus on unlisted and OTC companies, which hold a lot of potential and a high rate of return.

VOF revealed its strategy in 2016 to prioritize private, privatized and high-profile listed companies. Recent capital divestment deals under VinaCapital’s investment portfolio had an internal rate of return of over 20 percent.

VOF's current investment portfolio includes Novaland, Quang Ngai Surgar JSC, Eximbank, Phu Nhuan Jewelry and the Airports Corporation of Vietnam. It also recently purchased Thai Hoa Hospital for $9 million.