Business
The M&A activity bustling in the first half of the year
Mergers & Acquisitions (M&A) activities within the Vietnam real estate market continued to witness strong momentum in the third Quarter of 2017 with an increased number of transactions in commercial and residential sectors.
In September 2017, VinaLand Limited, one of the real estate branches of Vina Capital, divested its entire stake in the Vina Square Project – a 3-hectare development land site in District 5 in Ho Chi Minh city to Tri Duc Real Estate Company for net cash proceeds of approximately US$41.2 million in which included the repayment of shareholder loans, resulting in an IRR of 3.3% to VinaLand.
In Hanoi, Lam Vien Investment and Construction Joint Stock Company transferred the entire project of AZ Lam Vien Complex to AZ Land Joint Stock Company. The investment project will be constructed on area of 1.954 m2 and with the average height of 29 floors (excluding 2 basements). The project has a total investment of VND690.6 billion, of which VND138.12 billion is equity capital of the investor (20% of the total investment) of VND552.48 billion (80%). The project has been implemented the fourth Quarter 2013 to second Quarter 2018.
Although residential and commercial transactions dominated M&A activities in this quarter, an industrial transaction was recorded, in which Ascendas-Singbridge transferred its 0.3-hectare land plot in Ascendas-Protrade Singapore Tech Park (APSTP) to Koan Hao Technolgy – a Taiwanese manufacturer of self-adhesive labels. APSTP is a 500-hectare new generation industrial park in Binh Duong Province, that provides industrial spaces from prepared land parcels, ready-built factories and other tailor-made solutions.
It is anticipated that the following quarters will continue to see strong demands from a wide range of investors seeking to make the cut in the Vietnam real estate market, especially from Japan, South Korea, Singapore, Hong Kong and mainland China. With fierce competition and limited supply of good quality stock, the market will witness further real estate M&A transactions as investors seek ways to deploy capital quickly and efficiently.
AZ Lam Vien Complex.
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Although residential and commercial transactions dominated M&A activities in this quarter, an industrial transaction was recorded, in which Ascendas-Singbridge transferred its 0.3-hectare land plot in Ascendas-Protrade Singapore Tech Park (APSTP) to Koan Hao Technolgy – a Taiwanese manufacturer of self-adhesive labels. APSTP is a 500-hectare new generation industrial park in Binh Duong Province, that provides industrial spaces from prepared land parcels, ready-built factories and other tailor-made solutions.
It is anticipated that the following quarters will continue to see strong demands from a wide range of investors seeking to make the cut in the Vietnam real estate market, especially from Japan, South Korea, Singapore, Hong Kong and mainland China. With fierce competition and limited supply of good quality stock, the market will witness further real estate M&A transactions as investors seek ways to deploy capital quickly and efficiently.
