0944 684 986 Support@youroffice.vn

Foreign businesses boost investment in real estate projects

Find your building

Price range $ - $

Grade

Foreign businesses boost investment in real estate projects

 

A recent report by Savills Vietnam shows foreign involvement in property projects in Vietnam, mainly through mergers and acquisitions (M&A), surged in the second quarter of 2017. 

 

 

Reportedly, Thailand-based Hemaraj Land and Development Public Co Ltd and Civil Engineering Construction Corporation No. 4 (CIENCO 4) of Vietnam jointly established a 3,200-hectare industrial park with a total investment of US$1 billion in May.

Meanwhile, China Fortune Land Development Co Ltd spent US$65.3 million taking over the 198.5-hectare Lotus Dai Phuoc project of VinaCapital in Southern province of Dong Nai.

A 65% stake worth about US$41 million in the Times Square project, Hanoi was transferred by VinaCapital to Elite Capital Resources Limited.

Foreign businesses boost investment in property projects
Foreign businesses are investing heavily in real estate projects

Also, Japanese investors were operating actively in the local real estate market. For example, Nishi Nippon and Hankyu cooperated with Nam Long to develop a 26-hectare Mizuki Park residential area capitalized at US$351 million in Binh Chanh District of Ho Chi Minh City.

Famous Japanese retailer Aeon Mall also tied up with BIM Group to build Aeon’s second shopping mall in the capital of Hanoi. Reportedly, the project requires US$200 million and covering an area of 16.7 ha.

Another Japanese investor also invested US$100 million in Son Kim Group to carry out its projects.

Also in May 2017, Hong Kong Land acquired 64% stake in HCMC Infrastructure Investment JSC (CII) to develop residential projects at Thu Thiem new urban area, District 2.

Saigon One Tower, which is a long-delayed project in District 1, HCMC, was also transferred to Alpha King Real Estate Development JSC.
Thanks to capital mobilized from investment funds and partners, developers of housing projects in Hanoi and HCMC are now less independent on bank loans.

In the first half of 2017,  FDI disbursements totaled US$7.72 billion, an increase of 6.5% over the same period last year. Meanwhile, fresh FDI approvals amounted to US$19.22 billion, up 54.8% year-on-year, reported Savills.

Besides, JLL has forecast that the number of M&A deals in the property market will be high in 2017. International investors with strong finances and experiences tend to cooperate with local firms with available land and good relations with local authorities.

JLL added  that a large amount of money from Korean, Japanese, Chinese and Singaporean investors would be poured into housing, office, retail, hotel and industrial park development projects in the upcoming time.

(Source: Saigontimes)