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Jun 17, 2020 / 18:26

KKR-led consortium purchases 6% stake in Vietnam property developer Vinhomes

The Vietnamese property developer has long enticed foreign investors.

A consortium led by private equity firm KKR has completed acquiring a stake worth US$650 million of Vinhomes (VHM), a subsidiary of Hanoi-based conglomerate Vingroup, as Vietnam is considered a regional investment destination with its strong development and growth prospects. 

 KKR-led consortium invests in Vinhomes. Photo: Vinhomes.

Following the transaction, Vingroup will continue to be the controlling shareholder of Vinhomes. KKR made the investment primarily from its Asian Fund III.

The investment further emphasizes the attractiveness of the Vietnamese property company given its position as Vietnam’s leading integrated real estate platform with unparalleled execution capabilities, access to sizable land fund and significant growth opportunities in residential, commercial and industrial real estate.

“This investment exemplifies the type of platinum brands and management teams KKR looks to work with in Southeast Asia,” Ashish Shastry, co-head of Private Equity for KKR Asia Pacific & Head of Southeast Asia, said. 

Nguyen Dieu Linh, chairwoman of Vinhomes said: “We are pleased to welcome KKR as a shareholder in Vinhomes, and believe that the investment demonstrates the confidence of international investors in Vinhomes, Vingroup and the Vietnamese market.”

Vinhomes has two other major shareholders. Vingroup, as the parent company, holds nearly 71% of the company and Singapore sovereign wealth fund GIC owns 5.85%.

Vinhomes reported over VND6.5 trillion (US$279.4 million) in revenue in the first quarter of 2020. This figure is expected to reach to VND97 trillion (US$4.17 billion) this year, up 87% compared to 2019. Net profit for 2020 is forecast at VND31 trillion (US$1.33 billion), up 28% versus 2019.