Warburg Pincus leads $250 mln investment in developer Novaland

World-leading private equity firm Warburg Pincus led a $250 million investment in property developer Novaland, one of Vietnam’s largest listed companies.

The deal marked the New York-based giant’s first investment in Novaland, kicking off their strategic partnership, the Vietnamese major said Wednesday. Credit Suisse acted as the sole financial advisor for Novaland in this financing.

Novaland, listed on the Ho Chi Minh Stock Exchange, plans to use the proceeds to continue expanding its land bank and complete its ongoing flagship projects in southern Vietnam, the developer added.

"This investment further reinforces our strong commitment to Vietnam. With its continued urbanization, emerging middle class and an increasingly more diversified economy, Vietnam is poised for significant growth in the coming years," said Jeffrey Perlman, Warburg Pincus's managing director and head of Southeast Asia and Asia Pacific real estate.

Warburg Pincus has conducted various investments in Vietnam in recent years, with a committed total equity capital of over $1.5 billion since 2013. The investments are for retail, real estate, logistics, hospitality, banking, and fintech, among others.

For 2021, Novaland reported total revenue of nearly VND15 trillion ($646.5 million), up 186% year-on-year, and a net profit after tax of nearly VND3.45 trillion, a 23% increase. Its total assets surged by 40% to VND202 trillion.

The developer expects its mega-scaled projects like Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram and other key projects in Ho Chi Minh City to become the main booster for its 2022 revenue, which is expected to be VND36 trillion, more than doubling last year’s result.

By 2030, Novaland has set a goal of expanding to 50 urban areas in 30 cities and provinces that offer great economic and tourism potential.

One of the most prominent projects of Novaland is the NovaWorld Ho Tram which covers 1,000 hectares along the sea route from Loc An to Binh Chau in the southern province of Ba Ria-Vung Tau. With the inauguration of subdivisions such as The Tropicana, Wonderland, Habana Island, Morito and Binh Chau Onsen, NovaWorld Ho Tram has officially been put into operation.

Located in a central position in the series of NovaWorld Ho Tram subdivisions, Wonderland comprises commercial and service areas; sea entertainment amenities; four-star hotels managed and operated by international brands; and more than 270 second homes including detached villas, duplex villas, quadridetached villas, seaside townhouses and shophouses.

Inspired by Western fairy tales, Wonderland - NovaWorld Ho Tram recreates a colorful world with an impressive and unique design style bearing the sound of a tropical seaside wonderland.