One recent transaction was conducted quietly: Senla Boutique Hotel was transferred to Hong Phuc Quang Real Estate & Trade. The hotel valued at $45 million is still half-finished, though the construction began three years ago.

Another big investor who has been silently buying projects recently is Van Thinh Phat. The conglomerate is negotiating for the transfer of Quoc Cuong Gia Lai’s Phuoc Kien project. It took over Thuan Kieu Plaza and renamed the shopping center Garden Mall.

Analysts cited a number of Vietnamese names financially capable of making huge M&A deals, including Vingroup, Novaland, Hung Thinh, and An Gia Investment. However, they warned that the domestic conglomerates will have to compete with foreign investors.

According to CBRE Vietnam, 30 transfer deals of housing and trade center and complex projects had been carried out by the end of September, worth $800 million.

According to CBRE Vietnam, 30 transfer deals of housing and trade center and complex projects had been carried out by the end of September, worth $800 million. Of these, the value of the M&A deals made by foreign investors accounted for 68 percent.

Foreign investors have been the main buyers in impressive M&A affairs recently, targeting houses, hotels, office buildings and industrial zones throughout the country.

The Taiwanese P.H. Group has taken over Otis Hotel, 4,000 square meters, in the coastal city of Nha Trang and has bought Bau Bang Industrial zone in Binh Duong province from Becamex. 

Also in Binh Duong province, another investor from Taiwan – Koan Hao Technology – has taken over Protrade Singapore Tech Park project.

The list of impressive M&A deals made by foreign investors includes CapitaLand, which spent hundreds of million dollars to acquire a series of housing and office projects in the central business districts of HCMC.

Son Kim Land has received $46 million worth of capital from EXS Capital, while Hong Kong Land spent $100 million to join forces with CII to develop land funds in Thu Thiem new urban area. 

Meanwhile, analysts noted that well-known Chinese conglomerates have set up offices in Vietnam and employed financial analysts, preparing to pour capital into real estate projects.
 
Marc Djandji from Rong Viet Securities said some Vietnamese investors have enough money to buy assets to be put into auction. 

However, as the scale of bad debts and mortgaged assets is high, VND266 trillion and VND434 trillion, respectively, there should be both Vietnamese and foreign investors to join the deals.

According to Duong Thuy Dung from CBRE Vietnam, the capital from private equities in real estate in 2016 and 2017 is estimated at $613.5 million, higher than the capital flow into retail, consumer goods, education, finance, IT, infrastructure and entertainment.

RELATED NEWS

VN banks hopeful for mortgage market growth

Bank earnings to rise as credit growth gains momentum

Thanh Mai