According to Dam Quang Tuan, board chairman of Duc Manh 579, a real estate investor in Danang, although many solutions were given by the government and local authorities, such as interest rate reductions and the state support packages, many projects still remain postponed.
“There are many reasons for this standstill,” Tuan said. “First, the developers of those projects don’t have enough capacity. Second, many projects with mortgages from banks can’t be sold and the developers lack the capital to finish their projects.”
According to Tuan, mergers and acquisitions (M&As) are a feasible way for both sellers and new investors who are seeking opportunities in the city’s real estate market.
M&A in the real estate sector in Danang has become increasingly popular. Novaland Group recently acquired a part of the Da Phuoc Urban Area project from its original South Korean backers Daewon Cantavil. The project will begin with roughly 2,700 townhouses and more than 1,000 villas of all sizes and types.
It will be a new residential area, including hotels, villas, landed houses, schools, a shopping centre, and a conference hall. It is expected to be completed by 2023.
Gaw Capital Partners has acquired the Hyatt Regency, and TBC Group acquired the Montgomerie Links golf course, both from Indochina Land. BRG Group acquired an 18-hole golf course from VinaCapital, and VinaCapital also transferred its Marina complex to Quoc Cuong Gia Lai JCSC.
In another deal, Alphanam acquired the Golden Square project from Dong A Real Estate JSC.
According to Nguyen Phi, a consultant from Phat Loc Land, the new Law on Investment which creates a more transparent legal framework for M&A activities makes this method an excellent choice for investors whose projects have been postponed.
“M&A transactions have paved the way for long-delayed projects such as Da Phuoc Urban Area, Golden Square, and Danang Centre, to be finished and put into operation,” Phi said.
According to the latest report from Savills Vietnam, Danang offers investors well-developed and completed infrastructure, as well as good urban planning. The northwest coastal area embraces the natural landscape to develop eco-tourism.
Buyers from Hanoi and the central provinces, especially Quang Ngai, Ha Tinh, and Quang Binh, are rushing to Danang in search of second homes and investments.
Danang has a total of more than 50 coastal property projects. Of these, eight projects were granted land leases while 16 others were postponed.
On Danang’s coastline, a range of projects are proceeding nicely. Among them are Cocobay, Ariyana Beach Resort & Suites Danang, Vinpearl Danang, Anh Duong Wyndham Solei Danang, Hoa Binh Green Danang, among many others.