Attracting venture capital

LDG Group is a developer with many unfinished projects that cannot be deployed in Ho Chi Minh City because of legal issues and cash flow. To solve the situation, chairman Nguyen Khanh Hung in June said he wants to mobilise capital from outside, and a merger and acquisition (M&A) is one potential method. Vietnam boasting buoyant real estate M&A activities “We are looking to finish legal documentation for two projects of the High Intela and the West Intela with a total of around 800 units which can be taken into M&A for other potential partners. This would be a good solution for LDG because these projects are small in scale, and LDG should leave them to drive focus towards improving its governance and construction capacity,” Hung said. According to Do Duy Thanh, manager of Savills Hanoi Investment Advisory Department, M&As are considered a safe and beneficial solution for both parties because the domestic enterprise can solve the capital shortage, while … [Read more...] about M&A route lends appeal for delay-ridden ventures

In late July, the Ministry of Transport (MoT) sent a dispatch to the Ministry of Justice seeking the latter’s consensus in allowing VINA2 Investment and Construction JSC to transfer its stake in a project to one corporate entity and an individual investor outside the project’s consortium. VINA2 is one of three investors in a BOT project on the renewal and upgrading of National Highway 38’s road section connecting the national highways No.1 and No.5. This is also the first time a stake transfer at a BOT-related enterprise has taken place between a legal entity and individual investor. This rare case began a year ago when the project developer first sought approval from the MoT to allow VINA2 to transfer its entire 31 per cent stake to Vo Phi Hai, who would hold 28 per cent of the stake, and to Investment Mining Port JSC (IMPORT) that will keep the remaining 3 per cent. In the dispatch, the MoT assumed that the stake transfer to Hai is simply a capital restructuring step of the … [Read more...] about BOT procedure roadblocks hindering venture progress

The race for mergers and acquisitions (M&As) in the real estate industry has continuously increased, with foreign investors sealing many deals in recent months. Vietnam boasting buoyant real estate M&A activities CapitaLand Development revealed on July 14 that it was acquiring a prime mixed-use site in Thu Duc district of Ho Chi Minh City, with an estimated gross development value of $720 million. This 8-hectare project will provide 1,100 apartments and will go into operation in 2027. A couple of weeks previously, Thai retail giant Central Retail also announced that it would invest an additional $869 million in the Vietnamese market, including developing complex projects and commercial centres over the next five years. The group also said that in the coming time, it will maintain the M&A target to accelerate its expansion in the retail real estate sector. Olivier Langlet, general director of Central Retail Vietnam, said, “We see Vietnam as one of the key … [Read more...] about Vietnam boasting buoyant real estate M&A activities

New potential and trends The Indochina Kajima Development Company, a joint venture between Indochina Capital and Kajima Corporation, recently launched an industrial real estate investment and development platform focused on the nationwide roll out of factory and warehouse properties for lease throughout the country’s key manufacturing and logistics markets. The Core5 Vietnam platform ( www.c5ip.vn ) plans to offer industrial assets of some US$1 billion in the next 5-7 years. Germany’s Framas Group has rented a ready-made factory area of ​​20,000 square meters in the KTG Industrial Nhon Trach 2 project (Dong Nai Province). Framas specializes in the production of high-quality plastic parts for customers such as Nike and Adidas. According to Fabian Urban, Head of Footwear Technology at Framas Vietnam, Vietnam was chosen as a factory site because of its superior facilities compared to other locations. The establishment of the new factory is part of the group’s strategy to … [Read more...] about Industrial real estate market recovers strongly