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Jun 02, 2022 / 15:36

Warburg Pincus invests $250 million in Vietnamese property

Warburg Pincus believes in the Vietnamese economy’s long-term growth trajectory and continues to actively pursue new opportunities to invest in leading platforms in the country.

A Warburg Pincus-led consortium completed a US$250 million investment in Novaland Investment Group JSC (Novaland), a member of NovaGroup, the Vietnamese property developer with an established track record of approximately US$10 billion in Gross Development Value sold since 2009.

 Novaworld Ho Tram real estate project in Ba Ria-Vung Tau Province. Photo: Novaland

Proceeds of the $250 million financing from this transaction will be allocated to land bank acquisition and development of ongoing projects in strategic locations, leveraging on upcoming infrastructure in the southern part of Vietnam.

Bui Xuan Huy, Novaland’s Chairman, said: “Warburg Pincus’ proven track record of supporting successful real estate businesses in Vietnam and Asia will be valuable to us, and we look forward to working together with them on Novaland’s next chapter of growth.”

The Warburg Pincus financing represents Novaland’s second successful fundraising with international investors in less than a year since the issuance of international convertible bonds listed on the Singapore Stock Exchange in July 2021.

Jeffrey Perlman, Managing Director, Head of Southeast Asia and Asia Pacific Real Estate at Warburg Pincus, said this investment further reinforces its strong commitment to Vietnam. With its continued urbanization, emerging middle class, and increasingly more diversified economy, Vietnam is poised for significant growth in the coming years.

“We are very excited about the opportunity to invest in yet another leading Vietnamese business and look forward to collaborating with NovaGroup’s and Novaland’s high caliber management team,” he added.

This transaction marks the beginning of a strategic partnership between Novaland and Warburg Pincus. It is the sixth investment in Vietnam by Warburg Pincus.

Warburg Pincus, a global private equity firm focused on growth investing, has since 2013  invested over US$1.5 billion of equity capital into several of Vietnam’s leading businesses, including Vincom Retail, the modern retail platform in Vietnam, which was fully exited in 2019, BW Industrial Development, the largest logistics and industrial developer in Vietnam; Lodgis Hospitality, the largest homegrown integrated hospitality platform in Vietnam, Techcombank, the largest joint-stock commercial bank in Vietnam, and MoMo, the largest fintech platform in Vietnam.

The firm is also the largest and most active private equity investor in Vietnam, having invested or committed over $1.5 billion in Vietnam since 2013 and completed two of the largest IPOs ever in the country - Vincom Retail and Techcombank.