Mitsubishi restructures real estate investments in Vietnam

Mitsubishi Corporation, the trading arm of Japanese keiretsu Mitsubishi, has restructured its real estate investment portfolio in Vietnam.

In a filing with the Tokyo Stock Exchange last week, Mitsubishi Corporation said it sold more than 21.28 billion shares of Diamond Realty Investment Ocean Park Co., Ltd., equivalent to 99.9% of voting rights, for JPY28,400 million ($187.6 million).

After the transaction, Mitsubishi retained a mere 0.1% of voting rights in Diamond Realty that is a special purpose company for investment in real estate investment in Vietnam.

The new stakeholders are Taisei Corporation (33.4%); Hankyu Hanshin Properties Corp. (33.4%); and Tokyu Land Asia Pte. Ltd. (33.1%).

Incorporated in 1917, Tokyo-based Taisei Corporation has a charted capital of JPY122,742 million ($810.9 million) and operates in construction, civil engineering and real estate development.

Hankyu Hanshin Properties Corp., established in 1947, has a charted capital of JPY12,426 million ($82.1 million). It leases offices and commercial facilities and works in other realty areas including real estate funds and property sales.

Singapore-based Tokyu Land Asia Pte. Ltd, established in 2018, is an investor in condominiums, hotel complexes, and office development. It has a charted capital of $82 million.

As of end March 2023, Mitsubishi Corporation recorded investments of JPY148 billion ($977.8 million) and guarantees of JPY30 billion for activities in Vietnam, equivalent to risk money (investments, loans, and guarantees) of JPY178 billion.

On March 26, Vietnamese conglomerate Vingroup, among the biggest private firms in Vietnam, and Mitsubishi Corporation signed a memorandum of understanding (MoU) for strategic cooperation in various sectors including urban development and infrastructure.

The two parties will continue working together to create green, smart and integrated urban areas. Mitsubishi Corporation had previously signed a strategic cooperation agreement with Vinhomes, a subsidiary of Vingroup, to develop high-standard urban projects in Hanoi and Ho Chi Minh City, setting what they called "a new benchmark for the real estate market in Vietnam."