Overview on M&A activities in Vietnam 3Q17 – JLL

Vietnam, 25 Oct 2017 – M&A activity within the Vietnam real estate market continued to witness strong momentum in 3Q17 with a number of transactions in commercial and residential sectors.

In September 2017, VinaLand Limited, one of the real estate arms of Vina Capital, divested its entire stake in the Vina Square Project – a 3-ha development land site in District 5, HCMC – to Tri Duc Real Estate Company for net cash proceeds of approximately US$41.2 million in which the repayment of shareholder loans is included, resulting in an IRR of 3.3% to VinaLand.

Although residential and commercial transactions dominated M&A activities in this quarter, we recorded one industrial transaction in which Ascendas-Singbridge transferring its 0.3-ha land plot in Ascendas-Protrade Singapore Tech Park (APSTP) to Koan Hao Technolgy – a Taiwanese manufacturer of self-adhesive labels. APSTP is a 500-ha new generation industrial park in Binh Duong Province that provides industrial spaces from prepared land parcels, ready-built factories and other tailor-made solutions.

We anticipate the following quarters will continue to see strong demand from a wide range of investors seeking to make the cut in the Vietnam real estate market, with a particular focus on groups from Japan, South Korea, Singapore, Hong Kong and mainland China. With fierce competition and limited supply of good quality stock, we will be keeping an eye for further real estate M&A transactions as investors seek ways to deploy capital quickly and efficiently.

List of some M&A transactions in Vietnam 3Q17:

Source: Real Capital Analytics