Singapore’s Boustead Projects set to acquire Vietnamese industrial developer for $11 mln

Boustead Projects Limited, a Singapore-based provider of innovative eco-sustainable real estate solutions, has announced an agreement to acquire Vietnamese firm Minh Quang Industrial Development JSC for VND261.9 billion ($10.8 million).

The Singaporean firm said Tuesday that KTG & Boustead Industrial Logistics JSC (KBIL) – a joint venture with Vietnamese firm Khai Toan JSC – has entered into an agreement to purchase all issued and paid-up shares of Minh Quang Industrial Development JSC, comprising 3.3 million ordinary shares.

Boustead Projects said Minh Quang Industrial Development has signed an in-principle land lease agreement for a land plot of 13.65 hectares in Yen Phong district, northern province of Bac Ninh. The land lot is expected to be handed over to Minh Quang from the second half of 2024, with a tenure to 2069.

Via the acquisition of Minh Quang Industrial Development, the Singaporean firm plans to develop the land lot into industrial facilities for lease, expanding its portfolio.

Real estate services provider Savills Vietnam has valued the land lot at VND527.1 billion ($21.8 million).

Boustead Projects said in a release that the acquisition was in line with the firm’s expansion strategy.

It said that the land lot’s strategic location, long-term growth potential and Vietnam’s rapid growth created an ideal business environment for multinational corporations.

This is the latest in a series of acquisitions of Vietnamese real estate developers by foreign firms this year.

Earlier this month, Sycamore, an affiliate of Singapore-headquartered CapitaLand, acquired the Tan Thanh Binh Duong housing-urban area complex in Binh Duong province. With an initial investment of VND13,645 billion ($562.1 million), the 18.9-hectare project is set to accommodate 12,500 people in 3,300 houses and 462 villas.

In November, CapitaLand Development, the development arm of Singapore-headquartered CapitaLand Group, said it would begin construction of a high-end residential project in Hanoi in the first quarter of 2024.

CapitaLand said the project, named Lumi Hanoi, covers 5.6 hectares of a prime site in the West of Hanoi, with a total gross development value of SGD1 billion ($738.6 million). The project used to be part of Vinhomes Smart City, a project of Vinhomes, the real estate development arm of Vietnam's biggest private conglomerate Vingroup.

In September, Malaysia’s SkyWorld, developer of the well-known Genting SkyWorlds Theme Park, acquired 5,300 square meters of land in Ho Chi Minh City, its first land acquisition in Vietnam.

SkyWorld clarified its wholly-owned subsidiary SkyWorld Vietnam entered into a conditional shares sales and purchase agreement with Thuan Thanh Trading Production and Real Estate Training JSC and three individuals. SkyWorld said it will spend VND350 billion ($14.5 million) on acquiring 100% of the Vietnamese firm’s shares.