M & A deals "cult" on the HCM City real estate market
M & A deals "cult" on the HCM City real estate market
As noted, favorable macroeconomic factors are very good support for the real estate market. Mergers and acquisitions (M&A) are bustling with the participation of domestic and foreign "big men". Among them are the "blockbuster" deals that promise to kick-start the excitement of M&A real estate in 2019.
Vietnam is a country of great attraction to foreign investors. In 2017, Real Estate ranks among the top 5 industries attracting the most FDI. Top 5 countries investing in Vietnam include Korea, Japan, Singapore, China and Hong Kong. Capital acquisition of companies, real estate investments are mainly housing, office, retail, hotel and industrial segments.
In the country, domestic project developers such as Novaland, Hung Thinh ... are also constantly expanding and looking for advantageous land positions. Some real estate investors have attracted foreign capital to develop projects such as Vinhomes, Bitexco, Son Kim, An Gia, Nam Long ...
GIC invests in Vinhomes
In the middle of April 2018, a typical M&A deal in the real estate sector is GIC investing in Vinhomes.
As announced, GIC invests 1.3 billion USD (equivalent to 29,500 billion dong) in two forms of investment in buying shares and providing a debt instrument for Vinhomes (such as loans) to implement projects. . At the time of receiving investment, Vinhomes operates 10 projects with a total of nearly 18,000 commercial apartments, villas, and townhouses.
Long An Waterpoint Project
Nam Long and Nishi Nippon Railroad, TBS Group and Tan Hiep Company cooperated to implement the first phase of Waterpoint urban area. The capital contribution ratio is expected to be 50-35-10% and 5% respectively to jointly implement the first phase of the project with a total investment of VND 6,900 billion.
CapitaLand acquired the Doan Nguyen Binh Trung Dong project
Another deal is Capitaland successfully acquired 86 million shares, equivalent to 100% of chartered capital of BCLand JSC, total deal value is VND 1,380 billion.
CapitaLand aims to be a project with an area of 60,732 m2 (6 ha) in Binh Trung Dong Ward, District 2, HCMC. Ho Chi Minh City of Doan Nguyen Housing Investment and Trading Company Limited (Doan Nguyen) is holding 100% of chartered capital by BCLand.
Notably, before being acquired by BCLand and now CapitaLand (indirectly controlled), Doan Nguyen once belonged to a well-known enterprise in the South in real estate, which is a joint stock company. Investment in Khang Dien house business (HSX: KDH).
Keppel Land owns 100% at Saigon Sports City project
Keppel Land officially owns 100% at Saigon Sports City project after acquiring the remaining 10% from JenCity Lim-ited through subsidiary Oil Asia Pte. Limited. Transaction value is about 11.4 million USD. Total development cost of Saigon Sports City project is about 500 million USD.
Commercial real estate business 200 million USD
Another notable business is Warburg Pincus, a private investment fund, in conjunction with the Industrial Development and Investment Corporation - Becamex IDC, established a joint venture with an investment capital of more than USD 200 million. This deal is aimed at developing logistics and industrial real estate chains in Vietnam. The joint venture, named CTCP, BW Industry Development, focuses on developing and operating ready-built warehouses and factories, at the request of customers in key economic and industrial areas in Vietnam.
Ha Vy
