M&A Report | 2021

Mergers and acquisitions activity is growing across Asia Pacific’s real estate market, a sign that institutional investors are continuing to increase their allocations to the industry.

For Vietnam’s real estate market, 2018 starts off with the acquisition of Sun Wah office tower by Nomura Real Estate Development. According to their press release, Nomura acquired 24% stake in the Grade A office building located in the CBD of Ho Chi Minh. As for the residential sector in March 2018, CapitaLand announced the acquisition of 0.9-ha development site in Tay ho District, Hanoi, for approximately VND 685 billion (approximately US$29.78 million). Later, in the third quarter of 2018, CapitaLand bought a 6 hectares development site in Binh Trung Dong Ward, District 2, Ho Chi Minh City for VND 1.38 trillion (about US$60 million). The development is expected to yield more than 100 landed residential units, targeted for completion by 2021.

Another property giant, Frasers Property has publicly announced last year that they entered into a conditional share purchase agreement with Tran Thai Lands Company Limited to acquire 75% of the issued share capital of each Phu An Khang Real Estate JSC (PAK) and Phu An Dien Real Estate JSC (PAD). It is intended that PAK and PAD will undertake the development of residential-cum-commercial project in District 2 and Thu Duc District of HCMC, respectively.

One more of the notable transactions includes Keppel Land’s divestment of its stakes in Quoc Loc Phat JSC (QLP)’s development project in District 2, Ho Chi Minh City. Malaysia’s property group Berjaya Land Berhad also announced in a filing that it divested its entire resultant 32.5% of the capital contribution in Berjaya Vietnam Financial Center Limited (BVFC) to Vinhomes JSC (Vinhomes) and Can Gio Tourist City Corporation for a cash consideration of VND884.9 billion (approximately US$38.47 million). The development project would comprise “office building, a five-star hotel, service residences and shopping mall on a 6.64-ha land” in District 10, HCMC.

Learn more by clicking our M&A Report | 2021