Vietnam’s largest real estate M&A deals in Q3 2017

20/10/2017 11:23

During the third quarter of 2017, Vietnam’s real estate market saw several large mergers and acquisitions (M&A) deals. This wave of investment came from both the foreign and local businesses. 



Vietnam’s largest real estate M&A deals in Q3 2017
During Q3 2017, Ho Chi Minh City realty market recorded some outstanding M&A deals

Sacomreal cooperates with CJ Cau Tre to develop a new project in Tan Phu 

Sacomreal recently passed a resolution approving the cooperation with CJ Cau Tre Foods JSC to invest in a 80,000sq.m land plot at 125/208 Luong The Vinh Street, Tan Thoi Hoa Ward, Tan Phu District, Ho Chi Minh City (HCMC). Reportedly, the newly established company is named Thuong Tin - CJ Cau Tre Co., Ltd, with charter capital of VND700 billion and operates as a two-member limited liability company. In particular, Sacomreal holds 74% of capital, equivalent to VND518 billion and CJ Cau Tre owns 26%, equivalent to VND182 billion.

Kepple Land Vietnam acquires a 45% stake in Quoc Loc Phat JSC

Recently, Quoc Loc Phat JSC has been accepted by HCMC People’s Committee to develop Song Viet complex, covering a total area of nearly 7.6 hectares in Thu Thiem peninsula, District 2. According to Keppel Land, its two subsidiaries - Keppel Land Thu Thiem and Orbista - are holding 45% stake in Quoc Loc Phat.     

Keppel Land said its subsidiary Keppel Land Thu Thiem acquired 30 million shares, representing 20% of the total issued share capital of Quoc Loc Phat for a consideration of about VND330 billion. Orbista continued to buy 25% stake in Quoc Loc Phat for VND412 billion. Through this acquisition, Keppel Land has been granted the right to develop the functional area No.1 in  Song Viet complex, which is one of the most important projects of Thu Thiem new urban area. Currently, Keppel Land owns 20 real estate projects with a total of 25,000 homes in Vietnam.

BCI transfers Settlement Area No. 4 project to Thuan Phat 

Also in the previous quarter, land plot with an area of 75,414 sq.m in Settlement Area No. 4 (Binh Chanh District, HCMC) was transferred by Binh Chanh Investment JSC (BCI) to Thuan Phat Real Estate Co., Ltd for VND637 billion. Regarding form of investment, the developer will use its business capital to implement the project in accordance with approved plan.

LDG Investment JSC plans to acquire Gia Loc Investment Consultancy JSC

In early September, LDG Investment JSC approved the investment plan for project Residential area No.3, Block 9A+B in Southern City urban area. Accordingly, LDG will spend VND311 billion acquiring 100% share capital of all shareholders of Gia Loc Investment Consultancy JSC – the project developer. Covering an area of 131,855 sq.m, the project is expected to supply over 2,200 homes. In July, LDG’s management board also announced that the firm would continue to invest in 2 apartment projects in the West and South of HCMC. 

VinaLand divests from real esate projects in Vietnam

Last month, VinaLand Limited (under VinaCapital) announced the sale of all its capital at the Vina Square complex in HCMC. This 3-hectare project is sold entirely to Tri Duc Real Estate. After this successful deal, VinaLand earned $41.2 million, an estimated IRR of 3.3%. In Khanh Hoa, VinaLand also transferred 50% stake in My Gia Towership for $5.9 million, 0.7% higher than the unaudited net asset value on June 30. This 6-hectare project was acquired by VinaLand in 2008 and has just been transferred to a Vietnamese real estate developer.

Shinhan and VinaCapital invest $100 million in Novaland 

South Korea’s Shinhan Investment Corp has reportedly teamed up with Vietnam’s leading asset management firm VinaCapital to establish a $100 million private equity fund to invest in Vietnamese real estate developer Novaland.

Accordingly, the private equity fund will acquire convertible preferred shares in Novaland. This is the second time VinaCapital has poured capital into Novaland. In June 2015, the VOF Fund, managed by VinaCapital, together with a group of investors, also bought Novaland's convertible preferred shares worth $47 million, of which VOF invested $15 million. Other investors include GIC Singapore, JP Morgan, Duxton Asset Management, Dragon Capital, VietCapital Asset Management, VietFund Management.



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