Mergers and acquisitions (M&A) in the domestic real estate sectorhave always depended strongly on the property market in the capitalcity, experts said.
According to Thoi bao Ngan hang (BankingTimes), the experts cited the large business transactions that havetaken place in the capital city, including Daibiru Group of Japan'spurchase of office area at the corner of VIBank worth 60.1 million USD,Licogi 16 Company's purchase of the 143-billion VND (6.7 million USD)Sky Park Residence project from Thanh Hoa Construction Corporation, andFLC Group's purchase of land worth 198 billion VND (9.34 million USD) at36 Pham Hung St from Hai Phat Company.
Also, numerouscompanies have purchased shares to gain management rights in othercompanies. For instance, Vingroup, via Sai Dong Urban Investment andDevelopment Joint Stock Company, bought 128.6 million shares of the HongNgan Real Estate Company to own the Green City project, with atotal area of 17.6 ha and a total investment capital of 7.9 trillion VND(372.6 million USD).
Vingroup also bought 70 percent of Ocean Retail from the Ocean Group to change the name of Ocean Mart to VinMart.
Richard Leech, CBRE Vietnam's executive director, said that since2011, an average of 15 M&A transactions, mainly by domesticcompanies, have been taking place in the real estate sector every year.Domestic companies have accounted for 63 percent of the total number ofsellers and 54 percent of the total number of buyers of propertyprojects.
However, foreign direct investment (FDI) in the realestate sector in the first three quarters of this year reached 1.2billion USD, all in M&A, he added.
M&A in the sectordeveloped strongly, with an increase in the number of businesstransactions and requests for assessments and market studies, Leechrevealed.
Now, foreign investors are entering the domestic realestate market to conduct market studies, including those from theRepublic of Korea , Japan and Singapore, he noted.
Agood number of foreign investors are planning to buy office buildings inHanoi and Ho Chi Minh City, including projects that arecompleted, undergoing completion or scheduled for construction in thefuture.
"Every year, business M&A transactions areincreasing because the real estate sector is an attractive market, butcompanies just announce the business transactions under their strategyof marketing their trademarks," Ngo Thi Huong Giang, Savills Vietnam's senior manager of research and consultancy, told Vietnam News.
Phan Xuan Can, chairman of the Soho Vietnam Real Estate ConsultingCompany, said there are M&A activities in the domestic propertymarket than previously because of the increase of equity in the market,low interest rate of loans and low supply of property products.
Vu Minh Giang, Chairman of the Thai Minh Quang Joint Stock Company,said the M&A activities have increased and often developed in theinner city districts, especially for investors with good financialability.
Investors were attracted to the inner districts of CauGiay, Tu Liem, Thanh Xuan and Hoang Mai, where most enterprises havehad many projects and have sold some of them to restructure theirinvestment in their companies, Giang added.-VNA
According to Thoi bao Ngan hang (BankingTimes), the experts cited the large business transactions that havetaken place in the capital city, including Daibiru Group of Japan'spurchase of office area at the corner of VIBank worth 60.1 million USD,Licogi 16 Company's purchase of the 143-billion VND (6.7 million USD)Sky Park Residence project from Thanh Hoa Construction Corporation, andFLC Group's purchase of land worth 198 billion VND (9.34 million USD) at36 Pham Hung St from Hai Phat Company.
Also, numerouscompanies have purchased shares to gain management rights in othercompanies. For instance, Vingroup, via Sai Dong Urban Investment andDevelopment Joint Stock Company, bought 128.6 million shares of the HongNgan Real Estate Company to own the Green City project, with atotal area of 17.6 ha and a total investment capital of 7.9 trillion VND(372.6 million USD).
Vingroup also bought 70 percent of Ocean Retail from the Ocean Group to change the name of Ocean Mart to VinMart.
Richard Leech, CBRE Vietnam's executive director, said that since2011, an average of 15 M&A transactions, mainly by domesticcompanies, have been taking place in the real estate sector every year.Domestic companies have accounted for 63 percent of the total number ofsellers and 54 percent of the total number of buyers of propertyprojects.
However, foreign direct investment (FDI) in the realestate sector in the first three quarters of this year reached 1.2billion USD, all in M&A, he added.
M&A in the sectordeveloped strongly, with an increase in the number of businesstransactions and requests for assessments and market studies, Leechrevealed.
Now, foreign investors are entering the domestic realestate market to conduct market studies, including those from theRepublic of Korea , Japan and Singapore, he noted.
Agood number of foreign investors are planning to buy office buildings inHanoi and Ho Chi Minh City, including projects that arecompleted, undergoing completion or scheduled for construction in thefuture.
"Every year, business M&A transactions areincreasing because the real estate sector is an attractive market, butcompanies just announce the business transactions under their strategyof marketing their trademarks," Ngo Thi Huong Giang, Savills Vietnam's senior manager of research and consultancy, told Vietnam News.
Phan Xuan Can, chairman of the Soho Vietnam Real Estate ConsultingCompany, said there are M&A activities in the domestic propertymarket than previously because of the increase of equity in the market,low interest rate of loans and low supply of property products.
Vu Minh Giang, Chairman of the Thai Minh Quang Joint Stock Company,said the M&A activities have increased and often developed in theinner city districts, especially for investors with good financialability.
Investors were attracted to the inner districts of CauGiay, Tu Liem, Thanh Xuan and Hoang Mai, where most enterprises havehad many projects and have sold some of them to restructure theirinvestment in their companies, Giang added.-VNA
