A number of well-heeled developers have cashed in on the downturn ofthe real estate market last year to acquire properties. Report by theVietnam Investment Review.
The Vietnam Infrastructure andProperty Development Group Corporation (VIPD) struck the biggest deallast year, spending 470 million USD on the acquisition of Vincom Centre Afrom the Vingroup. Vinaconex - Hoang Thanh reached a deal to sell theParkCity residential project in Hanoi’s Ha Dong district toMalaysia-based Perdanna.
Many other domestic developers havetaken over projects, such as the FLC Group which spent nearly 300billion VND (14 million USD) for acquisition of Alaska Land project andthe Muong Thanh Group’s Lai Chau Construction Company No.1 which boughtthe VP6 Linh Dam project from Coma 18.
Several deals involved investors from Singapore and the Republic of Korea.
Lotte Hotels & Resorts Group purchased 70 percent of the LegendHotel in Ho Chi Minh City from VinaCapital’s Vietnam Opportunity Fundfor 62.5 million USD.
Maple Tree successfully closed thepurchase of the CentrePoint office building, located in Ho Chi Minh Cityfor 54 million USD.
Republic of Korea’s CJ bought the Gemadept office building in Ho Chi Minh City for more than 45.5 million USD.
Experts have predicted that many other transactions could well havetaken place without public fanfare. These transactions immenselyinfluenced the real estate market, and have prompted a shake-out of lessfinancially capable investors.
Foreign investors, especiallythose from Japan, the Republic of Korea, Singapore and China, aresearching to purchase offices for rent and shopping centres, whiledomestic investors are concentrating mainly on buying and sellingaccommodation.
The financial portal Stoxplus predicted the realestate market would continue to see more dynamic transactions, withforeign investors remaining interested in the retail sector. Projectswith good locations, transparent legal situations and competitive priceswill remain top targets.
According to CBRE associate directorof investment Adam Bury, whilst the increase in investment enquiriesand activities may sound like a silver lining to a particularly greycloud for some active within the market, it is worth remembering thatinvestors were also looking to Vietnam for opportunistic returns.
“To generate such opportunistic returns, of over 25 percent IRR for aproject, the price at which an investor enters a project is key,” Buryasserted.
In addition to valuations, there are three othermajor hurdles which domestic groups must overcome if they are to secureforeign investment. Those projects must have a proven track record,prudent and efficient structuring and transparency to incoming groups.-VNA
The Vietnam Infrastructure andProperty Development Group Corporation (VIPD) struck the biggest deallast year, spending 470 million USD on the acquisition of Vincom Centre Afrom the Vingroup. Vinaconex - Hoang Thanh reached a deal to sell theParkCity residential project in Hanoi’s Ha Dong district toMalaysia-based Perdanna.
Many other domestic developers havetaken over projects, such as the FLC Group which spent nearly 300billion VND (14 million USD) for acquisition of Alaska Land project andthe Muong Thanh Group’s Lai Chau Construction Company No.1 which boughtthe VP6 Linh Dam project from Coma 18.
Several deals involved investors from Singapore and the Republic of Korea.
Lotte Hotels & Resorts Group purchased 70 percent of the LegendHotel in Ho Chi Minh City from VinaCapital’s Vietnam Opportunity Fundfor 62.5 million USD.
Maple Tree successfully closed thepurchase of the CentrePoint office building, located in Ho Chi Minh Cityfor 54 million USD.
Republic of Korea’s CJ bought the Gemadept office building in Ho Chi Minh City for more than 45.5 million USD.
Experts have predicted that many other transactions could well havetaken place without public fanfare. These transactions immenselyinfluenced the real estate market, and have prompted a shake-out of lessfinancially capable investors.
Foreign investors, especiallythose from Japan, the Republic of Korea, Singapore and China, aresearching to purchase offices for rent and shopping centres, whiledomestic investors are concentrating mainly on buying and sellingaccommodation.
The financial portal Stoxplus predicted the realestate market would continue to see more dynamic transactions, withforeign investors remaining interested in the retail sector. Projectswith good locations, transparent legal situations and competitive priceswill remain top targets.
According to CBRE associate directorof investment Adam Bury, whilst the increase in investment enquiriesand activities may sound like a silver lining to a particularly greycloud for some active within the market, it is worth remembering thatinvestors were also looking to Vietnam for opportunistic returns.
“To generate such opportunistic returns, of over 25 percent IRR for aproject, the price at which an investor enters a project is key,” Buryasserted.
In addition to valuations, there are three othermajor hurdles which domestic groups must overcome if they are to secureforeign investment. Those projects must have a proven track record,prudent and efficient structuring and transparency to incoming groups.-VNA
