M&A Transactions Light Up Real Estate Market in H1 2022 | Company

Buildings in western Hanoi (Photo: VNA)

Hanoi (VNS/VNA) – Since the beginning of the year, the real estate market has seen an increase in mergers and acquisitions (M&A) activity, including office, residential and industrial projects.

According to a study by Cushman & Wakefield (C&W), the purchase of Capital Place, an A-grade office building in the heart of Hanoi, by Viva Land from CapitaLand Development for US$550 million, has warmed the M&A market for offices.

The high-end office project consists of two 37-storey office towers, selected to house the main offices of many multinational companies in the capital.

Previously, Viva Land also successfully acquired Saigon One Tower and renamed it IFC One, Saigon.

The project, located in the heart of District 1 of Ho Chi Minh City, is designed as a commercial building comprising offices, apartments and a shopping center with a total area of ​​124,100 square meters (m²).

For the housing segment, the market also saw a number of significant transactions, such as Novaland’s acquisition of the Kenton Node project from Tai Nguyen Construction Production Trading Co. and renaming it Grand Sentosa. This is a luxury apartment project with more than 1,640 apartments in Phuoc Kien Commune, Nha Be District, HCM City.

Another notable transaction is the purchase of the Saigon Binh An project, now known as The Global City, by Masterise Homes. The 117 ha project is located next to the Saigon Sports City complex and the Long Thanh-Dau Giay highway.

Recently, the American investment fund Warburg Pincus announced a USD 250 million investment in Novaland to increase the land reserve and develop Novaland’s existing projects in strategic locations, taking advantage of the gradually improving infrastructure in the southern region.

Two other investment funds – VinaCapital and Dragon Capital – also poured 103 million USD into Hung Thinh Land JSC, according to the C&W investigation.

Meanwhile, industrial real estate remains the hottest segment of the M&A market, accounting for 35% of the sector’s total deal value with numerous deals.

Earlier this year, GLP established GLP Vietnam Development Partners I with a total investment of USD 1.1 billion in six logistics center projects.

GLP is a leading investment manager and business developer for facilities, digital infrastructure, renewable energy and logistics.

In February, BW Industrial Development JSC – an industrial real estate developer co-founded by Warburg Pincus and Becamex IDC – acquired approximately 74,000 m² of land in Bac Tien Phong Industrial Park in Quang Ninh Province developed by DEEP C.

C&W Company said a recent notable deal was the acquisition of a 49% stake in KTG & Boustead Logistics Industrial JSC in Yen Phong Industrial Park in Bac Ninh Province by Boustead Projects Co., Ltd for 6 .9 million USD.

Trang Bui, director of Cushman & Wakefield, said residential and industrial real estate will be the most attractive sectors for investors and developers in HCM City, Hanoi and neighboring provinces.

In addition to traditional real estate types, in the past two quarters, investment in data center real estate has also been announced by Gaw Capital Partners, a Hong Kong-based private investment firm, with a data center project level 3 data center, built on a 6,056 m² site in HCM City’s Sai Gon Hi-Tech Park.

Experts said that despite the slowdown in the growth rate of countries in the region, Vietnam’s economy grew 7.72 percent in the second quarter of 2022, the highest level in 11 years.

Vietnam set a new record with 10.06 billion USD in capital from foreign investors in the first half of 2022.

The main foreign investors in the real estate market are Singapore, Japan, Denmark, China and the Republic of Korea.

C&W also identified many existing market issues, such as legal procedures. However, as the legal system gradually improves to limit conflicts between the regulations of the investment legal system, it will partly remove many existing obstacles for M&A activities in the real estate market this year./.