Vietnam’s real estate market has continuously attracted many investors thanks to the political stability and investment incentive policies and witnessed a rising number of merger and acquisition (M&A) deals.

Many deals worth hundreds of millions of dollars

TTCapital Investment Joint Stock Company, an HCMC-based real estate firm and Japanese partners namely Cosmos Initia Co. Ltd., and Koterasu Partners Pte. Ltd. plan to invest US$150 million over the next five years in a real estate project to offer around 1,000 affordable apartment units every year.

The joint venture will implement a residential building project in Di An City of Binh Duong Province to provide 2,000 apartments with an area of 50 - 60 square meters each at the price of VND35 million (nearly US$1,500) per square meter, equivalent to less than VND2 billion ($82,700) a piece.

Surbana Jurong Group, a Singaporean global urban, infrastructure, and managed services consulting firm, and Kim Oanh Group signed a cooperation agreement on developing real estate projects invested by Kim Oanh Group.

Singaporean Keppel Corporation announced that Keppel Land’s wholly-owned subsidiary VN Prime Vietnam (VNPN) acquired a 65 percent stake in a company that holds a retail property in Hanoi.

Hung Thinh Corporation has cooperated with Marubeni Corporation, one of Japan’s largest integrated trading and investment conglomerates, to develop a real estate project in Thu Duc City with an estimated investment of over VND10 trillion.

Gamuda Land, a property arm of Malaysian Gamuda Bhd, through its property arm, Gamuda Land has signed a share transfer agreement to acquire Tam Luc Real Estate Corporation, which owns a 3.68-hectare project site in Thu Duc City in HCMC for US$305 million.

Gamuda intends to develop the site into a mixed-use high-rise project consisting of 1,968 apartments, 12 penthouses, 51 podium shops, and 21 shophouse units.

According to data from KPMG, one of the largest professional firms in Vietnam, the most noteworthy transaction recorded was US$1.45 billion.

Deputy General Director of KPMG Nguyen Cong Ai, foreign investors who entered Vietnam previously often required perfect legality but now they accept a certain level of risks when Vietnamese businesses have offered appropriate prices and committed to being responsible for completing legal procedures.

A surge in the number of merger and acquisition (M&A) deals

Although there are still many challenges, economic experts believe that now is the right time for businesses to increase acquisition or cooperation activities, especially enterprises with strong financial potential.

The government has launched many other positive solutions to solve problems of real estate projects, reduce interest rates to support businesses, improve the transparency of the real estate market, and help companies expand markets and cooperation.

According to Ms. Trang Bui, General Director of Cushman & Wakefield Vietnam, there will be a large amount of capital from foreign investors pouring into the Vietnamese real estate market in the 2024-2026 period because many contracts are in the active negotiation process. Seeking clean land funds with high quality, real value, legal ownership, completed compensation, and development potential are investment goals.

Mr. Neil MacGregor, managing director at Savills Vietnam, assessed that a stable economy and large population, infrastructure development, urbanization, and abundant investments from foreign countries and the middle class are potential opportunities. It is predicted that there will be a surge in the number of merger and acquisition (M&A) deals in the Vietnamese real estate market in the next few years. Of these, most investments will come from Asian countries such as Singapore, Korea, Thailand, Malaysia, and Japan.

Director of HCMC Branch, DSC Securities Company Bui Van Huy acknowledged that M&A activities in 2024 would be more exciting than the previous years when buyers have gradually stabilized their potential and resources. Therefore, the real estate market will see a rising number of merger and acquisition (M&A) deals in the coming time. Cash flows in the secondary stock market will be less exciting but it creates a foundation for economic recovery and growth of the stock market.

Experts predict that Vietnam’s industrial real estate will strongly develop in the coming time due to the benefits of free trade agreements. Specifically, businesses with foreign direct investment will increase their trade activities in the Vietnamese market to enjoy tariff incentives. During this momentum, many investors will pay attention to the industrial real estate market segment. It allows foreign investors to expand their markets based on using experience and networks provided by the local partners.

SGGP News