Industrial real estate makes up 35% of property M&A deals in H1
Industrial real estate accounted for 35% of merger and acquisition deals in Vietnam's property sector in the first half of the year, second only to the office segment with 39%, according to Cushman & Wakefield.
The year started with a bang as multinational GLP established a fund named GLP Vietnam Development Partners I with $1.1 billion to invest in six logistics sites totaling nearly 900,000 square meters. GLP is a leading global investment manager and business developer in logistics, data infrastructure, and renewable energy.
In February, BW Industrial Development JSC, a joint venture between Vietnam’s Becamex IDC and leading global equity firm Warburg Pincus, announced its acquisition of around 74,000 square meters of land in Bac Tien Phong Industrial Park in the northern province of Quang Ninh, developed by DEEP C.
CapitaLand Development, a subsidiary of Singapore-based CapitaLand, signed a memorandum of understanding (MoU) with Bac Giang’s administration the same month. The partnership deal is for the development of an urban, industrial and logistics project with a total area exceeding 400 hectares in the northern province, with an investment commitment of $1 billion.
In H1, Boustead Projects Co. acquired a 49% stake in KTG & Boustead Logistics Industry JSC in Yen Phong Industrial Park of nearby Bac Ninh for $6.9 million.
This June, Hong Kong-based private investment firm Gaw Capital Partners disclosed an investment into a Tier 3 Data Center project, covering over 6,000 square meters in Ho Chi Minh City’s Saigon Hi-Tech Park, or SHTP.
“Vietnam’s real estate market has been attracting great attention from foreign investors, especially for its profitable projects. Growth of private equity funds has also supplied a large source of investment for M&A transactions,” said Trang Bui, country head of Cushman & Wakefield.
“These investors are constantly looking for active properties or looking to enter into joint ventures with reputable partners. For domestic investors, acquiring land for project development is of higher priority.
"Every sector of the property market is gaining attention from investors. We believe that residential and industrial will be the most attractive sectors for investors and developers from HCMC, Hanoi, and neighboring provinces,” she added.
Vietnam saw a record $10.06 billion in disbursed foreign direct investment in Vietnam in H1, marking the highest growth in five years. Real estate ranked second among the most invested sectors, accounting for 26% of total inflows. Investors from Singapore, South Korea, Denmark, China, and Japan led these inflows.
In addition to industrial real estate, Vietnam’s office M&A market in H1 heated up with HCMC-based Viva Land’s $550 million acquisition of Capital Place from CapitaLand Development.
The property is a grade-A office building in Hanoi’s Ba Dinh district, featuring a pair of twin 37-storey towers home to multinational tenants like HSBC Vietnam, Porsche, Standard Chartered Vietnam, and Toto Vietnam. It was the first office development in Hanoi then to obtain a Leadership in Energy and Environmental Design (LEED) Gold certification.
Established in 2020 and helmed by former CapitaLand veterans Eddie Lim and Chen Lian Pang, Viva Land completed its acquisition of the Saigon One Tower not long before the Hanoi transfer, and changed its name to IFC One Saigon. The project is located in the heart of District 1, HCMC, and is set to become an integrated office, apartments, and shopping mall property with a total floor area of 124,100 square meters.
In the housing market in H1, leading property developer Novaland acquired the Kenton Node project from Tai Nguyen Construction, Production, and Trading Co. This is a luxury apartment project in HCMC’s Nha Be District. Post-acquisition, the project - renamed Grand Sentosa - will supply the Saigon South area with a total 1,640 luxury apartments.
Another notable M&A deal was Masterise Home’s acquisition of the Saigon Binh An project, now known as The Global City in the Thu Duc area. With an area of 117 hectares, the project is close to the Saigon Sports City complex and Long Thanh-Dau Giay Expressway.
This June, American giant Warburg Pincus announced a $250 million investment into Novaland to increase the Vietnamese major’s land reserves and develop existing projects in strategic locations, taking advantage of the gradually improving infrastructure in southern Vietnam.
In May, Hung Thinh Land of HCMC-based Hung Thinh Group received a $78 million investment from Vietnam-focused Dragon Capital and another $25 million from VinaCapital Group. Via the deal, VinaCapital estimated Hung Thinh Land’s market value at around $2 billion, with the property firm expecting at least $200 million from its initial public offering in 2023, with plans to sell a 10% stake.
- Read More
Foxconn’s subsidiary Shunsin to invest $80 mln in northern Vietnam to produce integrated circuits
Shunsin Technology (Bac Giang, Vietnam) Limited, a subsidiary of Taiwanese giant Foxconn, will invest $80 million in Vietnam’s northern province of Bac Giang to produce integrated circuits (IC).
Industries - Mon, November 4, 2024 | 10:44 am GMT+7
Q3 earnings of Vietnam’s listed firms up 21.6%: FiinGroup
Net profits of listed companies in Vietnam increased 21.6% year-on-year in the third quarter of this year, maintaining a stable growth rate since the start of this year, according to local financial data provider FiinGroup.
Finance - Mon, November 4, 2024 | 9:31 am GMT+7
Thailand SCG’s revenue in Vietnam up 15% to $1.1 bln in Jan-Sept
Thailand’s Siam Cement Group (SCG) recorded a revenue of THB36.71 billion ($1.08 billion) in Vietnam in the first nine months of this year, up 14.7% year-on-year.
Companies - Mon, November 4, 2024 | 8:00 am GMT+7
Nghiem Xuan Thanh appointed Party chief of Khanh Hoa province
Nghiem Xuan Thanh, Party chief of Hau Giang province, was appointed by the Politburo, the country’s supreme decision-making body, to be Khanh Hoa province’s Party chief for the 2020-2025 term.
Politics - Sun, November 3, 2024 | 7:45 pm GMT+7
Thailand seeks FTA negotiations with Eurasian Economic Union
Thailand is holding talks with Russia to expedite negotiations for a free trade agreement (FTA) with the Eurasian Economic Union (EAEU).
Southeast Asia - Sun, November 3, 2024 | 7:20 pm GMT+7
Indonesia attracts foreign investment in technology sector
As many as 19 Australian companies have expressed an interest in investing in Indonesia's technology sector, Communication and Digital Affairs Minister Meutya Hafid said on Thursday.
Southeast Asia - Sun, November 3, 2024 | 7:18 pm GMT+7
Robots work hard, don’t argue: Viettel exec counsels effective use of technology
Small businesses in logistics should look to use existing tools, software and technology solutions effectively, says Dinh Thanh Son, deputy CEO of Viettel Post.
Companies - Sun, November 3, 2024 | 4:30 pm GMT+7
Vietnamese multi-sector group Masan uses AI to forecast product sales: executive
AI has helped Masan Group forecast the number of items likely to be sold during peak season based on available data and to optimize product placement, says An Luong, head of the corporation’s artificial intelligence & data science division.
Companies - Sun, November 3, 2024 | 2:51 pm GMT+7
Vietnam needs large, specialized logistics centers to compete better: official
Vietnam needs large-scale, specialized logistics centers that will enable greater competitiveness of local economies and enterprises, says Tran Thanh Hai, deputy head of the Ministry of Industry and Trade's agency of foreign trade.
Economy - Sun, November 3, 2024 | 11:00 am GMT+7
Vietnam manufacturing sector sees 35% increase in Q3 job orders: Adecco
Vietnam’s manufacturing and sourcing sectors saw a substantial 35% year-on-year increase and a 52% quarter-on-quarter increase in Q3/2024 job orders, global workforce solutions provider Adecco said in a reseach report released Thursday.
Economy - Sun, November 3, 2024 | 9:00 am GMT+7
Construction majors to continue capitalizing on public investment projects
Vietnamese construction giants are expected to continue capitalizing on public investment projects for the remainder of this year after delivering strong performances in the third quarter, analysts say.
Companies - Sun, November 3, 2024 | 8:00 am GMT+7
Former Government Office chairman receives $7,900 bribe from property project
Mai Tien Dung, former Minister-Government Office Chairman, received a bribe worth VND200 million ($7,900) from Nguyen Cao Tri, owner of the Dai Ninh eco-resort and urban area project in Lam Dong province.
Society - Sat, November 2, 2024 | 9:13 pm GMT+7
Thai food giant CP enters public-private partnership to promote food system transformation
Thai-invested C.P. Vietnam Livestock JSC and the Partnership for Sustainable Agriculture Vietnam (PSAV) signed a memorandum of understanding Friday on working together to advance sustainable agriculture in the country.
Companies - Sat, November 2, 2024 | 7:16 pm GMT+7
Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year
Vietnam’s central province of Quang Ngai will work with the investor to have construction of VSIP II Quang Ngai, a facility based on the Vietnam-Singapore Industrial Park (VSIP) model, begin in August 2025.
Industrial real estate - Sat, November 2, 2024 | 3:47 pm GMT+7
Vietnam likely to grow 6.5% in 2024-2025: VinaCapital
VinaCapital, among the biggest foreign-run asset managers in Vietnam, has forecast the country’s economy to achieve 6.5% growth in both 2024 and 2025, with the composition of the expansion to change to more domestically driven factors next year.
Economy - Sat, November 2, 2024 | 2:00 pm GMT+7
Major Vietnamese developer Novaland appoints new CEO
Duong Van Bac, who joined Novaland as chief financial officer in August 2023, has been appointed general director, starting Friday.
Companies - Sat, November 2, 2024 | 10:24 am GMT+7