illustrative image (Source: cafef.vn) Hanoi (VNA) - The number ofmergers and acquisitions (M&A) in Vietnam’s real estate market willcontinue growing this year and beyond, according to Savills Vietnam.
Su Ngoc Khuong Investment Director of Savills Vietnam, said M&A’s byforeign investors continued strong development in 2016 and 2017, especiallyfrom Japan, Hong Kong, the Republic of Korea and Singapore.
For instance, a Japanese investor bought 70 percent of shares of A&B officebuilding in HCM City, and Creed Group cooperated with two domestic investors, PhatDat and An Gia, to develop commercial apartment projects.
Meanwhile, Singaporean investors stepped up their investment into the localproperty market. Keppel Land joined the Empire City project and CapitalLandincreased its shares at The Vista project. Mapletree bought KumhoAsiana Plazain District 1, HCM City.
Strong development of M&A on the market showed high confidence of investorsand a new sustainable development cycle in local property market, Khuong said.With many projects of high potential, M&A would continue to be a popularmodel for investors to join the local market and implement their goals indevelopment of business on local property market.
Khuong said M&A’s would continue to be essential when the market developsfurther and investors would have to prove their skills, experience and class toachieve cooperation opportunities and join deals with large value and potential.
According to a research by Savills Vietnam, since 2014 the market has witnessedthe strategic steps of investors, including mergers and acquisitions anddevelopment cooperation.
For instance, Gaw Capital acquired commercial property from Indochina Land withhigh value, while Gamuda Land bought shares of domestic investors at CeladonCity project in HCM City.
M&A activities have taken place in various segments, such as a jointdevelopment venture of a resort project in Hoi An with a total investment at 4billion USD between Chau Tai Phuc Group and Suncity or Lotte’s acquisition onDiamond Plaza (District 1).
Khuong said that domestic investors also played an important role in M&Aand development cooperation. Van Thinh Phat, VinGroup, Novaland and Sun Groupbecame strategic investors when they have acquired potential projects or land todevelop property products.-VNA
VNA
