Thursday, March 28, 2024 7:58:37 PM - Markets open
VN-INDEX 1,290.18 +7.09/+0.55%
HNX-INDEX 243.92 +1.07/+0.44%
UPCOM-INDEX 91.48 +0.30/+0.33%
M&A deals light up property market in first half of 2022
Vietnamnews - 8/1/2022 3:45:57 PM
 (0 ratings. You must sign in to rate.)
Since the beginning of the year, the real estate market has seen an uptick in merger and acquisition (M&A) activity, including office, residential, and industrial projects.
 
According to a Cushman & Wakefield (C&W) survey, the purchase of the Capital Place, a Grade A office building in the heart of Hà Nội, by Viva Land from CapitaLand Development for US$550 million, heated up the office M&A market.
 
The high-class office project consists of two 37-story office towers, selected to house the main offices of many multinational corporations in the capital city.
 
Previously, Viva Land also successfully acquired Saigon One Tower and renamed it IFC One, Saigon.
 
The project, which is located at the heart of District 1, HCM City, is designed as a commercial building including offices, apartments and a commercial centre with a total floor area of 124,100 square metres (sq.m).
 
For the housing segment, the market has also recorded a number of huge deals, such as Novaland's acquisition of the Kenton Node project from Tài Nguyên Construction Production Trading Co. and renaming it Grand Sentosa. This is a luxury apartment project with more than 1,640 apartments in Phước Kiên Commune, Nhà Bè District, HCM City.
 
Another noteworthy transaction is the purchase of the Saigon Bình An project, which is now known as The Global City, by Masterise Homes. The 117ha project is located next to the Saigon Sports City complex and the Long Thành-Dầu Giây highway.
 
Recently, the US investment fund Warburg Pincus announced an investment of $250 million in Novaland to increase the land bank and develop Novaland's existing projects in strategic locations, taking advantage of the infrastructure that is gradually improving in the southern region.
 
Two other investment funds - VinaCapital and Dragon Capital - also poured $103 million in Hưng Thịnh Land JSC, C&W’s survey showed.
 
Meanwhile, industrial real estate remains the hottest segment in the M&A market, accounting for 35 per cent of the sector's total transaction value with numerous deals.
 
Early this year, GLP established GLP Vietnam Development Partners I with a total investment of $1.1 billion in six logistics centre projects.
 
GLP is a top investment manager and business developer for facilities, digital infrastructure, renewable energy, and logistics.
 
In February, BW Industrial Development JSC - an industrial real estate developer co-founded by Warburg Pincus and Becamex IDC - acquired about 74,000sq.m of land in Bắc Tiền Phong Industrial Park in Quảng Ninh Province developed by DEEP C.
 
C&W Company said that a recent notable deal was the acquisition of a 49 per cent stake in KTG & Boustead Logistics Industrial JSC in Yên Phong Industrial Park, Bắc Ninh Province by Boustead Projects Co., Ltd for $6.9 million.
 
Trang Bùi, head of Cushman & Wakefield, said that residential and industrial property will be the most attractive sectors for investors and developers from HCM City, Hà Nội, and neighbouring provinces.
 
Besides traditional real estate types, in the past two quarters, an investment in data centre real estate was also announced by Gaw Capital Partners, a Hong Kong-based private investment firm, with a Tier 3 Data Centre project, built on a site of 6,056sq.m in the Sài Gòn Hi-Tech Park of HCM City.
 
Experts said that despite the slowing growth rate of countries in the region, the Vietnamese economy grew at 7.72 per cent in the second quarter of 2022, the highest level in 11 years.
 
Việt Nam set a new record with $10.06 billion in capital from foreign investors in the first half of 2022.
 
Leading foreign investors in the real estate market include Singapore, Japan, Denmark, China, and South Korea.
 
C&W also identified many existing problems related to the market, such as legal procedures. However, as the legal system is gradually improving in order to limit conflicts among regulations in the investment legal system, it will partly remove many existing barriers for M&A activities in the real estate market this year. — VNS
 
Read original article here
 
Newer News
17:08 Management of real estate brokers to be tightened
23/03 HCM City real estate market to recover in H2
23/03 Industrial real estate emerges out of storm
18/03 Lots of ground to cover to build 130,000 social housing units this year
12/03 Deputy PM urges resolving price manipulation for healthy real estate market
12/03 Limit set on interest rates of loans for social housing
21/02 Experts upbeat about real estate prospects
23/12 Foreign investments in property market expected to soar: experts
22/12 Thừa Thiên-Huế invests in infrastructure in economic zones and industrial parks
19/12 PM asks for drastic solutions to remove difficulties for realty market
Older News
18/07 Urban cities plan restructuring of public land
25/06 Party Central Committee urges sweeping changes to real estate market
21/06 S. Korean investment into Việt Nam property market increases
15/06 Vietnam’s real estate market attractive to RoK investors: consultancy company
30/05 Drastic measures needed to keep property market healthy: conference
16/05 Not lending to property sector will have mixed effects: analysts
31/03 Real estate market riding high
15/03 Many factors support industrial real estate market’s growth: Experts
04/03 Construction on Sa Pa airport begins
23/01 Civil construction to benefit from public investment wave: insiders
 
Newsletter Signup
Top Stories
Shares sustain gains on strong investor confidence
Banks given advantages to CASA ratio
Man owes bank nearly VNĐ9 billion in credit card's interest after 11 years
VN-Index corrects, liquidity stays high
Stock Market Upgrade Journey: overcoming hurdles and reaching new heights
Market Update
Last updated at 3:05:00 PM
VN-INDEX 1,290.18 +7.09/+0.55%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.