More Vietnamese investors are buyers in real estate M&As
Foreign investors were once the buyers in M&A deals five years ago, but in many deals made recently, the buyers have been Vietnamese.
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A report said foreign investors make up 77% of total value of the M&A deals in Vietnam. However, analysts commented that Vietnamese conglomerates have an advantage because they have deep knowledge about the market and business environment, understand customers well and have the ability to approach land funds.
One of the M&A deals which caught attention from real estate developers recently was that of CapitaLand, which spent US$52 million to take over the 5,000 square meter land plot in Cau Kho ward, district 1, HCMC.
CapitaLand has also announced the purchase of a 90% stake in CapitaLand Thanh Nien to develop a project with 317 apartments.
In the resort real estate market segment, Berjaya Land from Malaysia has transferred a 70% stake in Long Beach Phu Quoc project to Sulyna Hospitality in a deal worth US$14.65 million. The deal is expected to be completed by 2018.
In June 2017, Nam Long Investment JSC and two Japanese investors - Hankyu Realty and Nishi Nippon Railroad – officially became partners to develop Mizuki Park project on an area of 26 hectares.
A series of other projects in HCMC have also been transferred to foreign investors. Saigon One Tower has been transferred to Alpha King Real Estate Development, while Vinaland JV Thang Long GTC has gone to Elite Capital Resources Ltd.
Meanwhile, Vietnamese investors are just as busy with M&A deals. Novaland, a big player, has made 25 M&As with total value of up to tens of trillions of dong.
In the first half of 2017 alone, Novaland took over Harbor City project and bought Gia Duc Real Estate in a plan to take over the entire The Sunrise Bay project.
Dat Xanh group has bought many land plots to develop projects which include Opal Garden and Opal Skyview. Vietnam’s An Gia Group, joining forces with Japanese Creed Group, has completed the purchase of seven blocks of Lacasa residential quarter in a deal worth VND910 billion.
Hoai An from CBRE Vietnam commented that the presence of foreign investors in M&A deals shows the great potential of the Vietnamese real estate market.
Meanwhile, the participation of Vietnamese investors in the race to take over real estate projects shows the strong rise of domestic resources. The market has entered a new period with fierce competition.
Nguyen Minh Phong, an economist, pointed out that foreign investors in M&A deals face some limitations set by the Real Estate Business Law and Housing Law which stipulate that foreign investors are not allowed to buy entire projects.
