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VinaCapital & Warburg Pincus create $300 million JV

Released at: 21:45, 20/11/2016

VinaCapital & Warburg Pincus create $300 million JV

Photo: VC/Courtesy

Fully integrated hospitality platform to span development, acquisitions, and operations in Southeast Asia.

by N. Quynh-L. San

Vietnam’s leading fund manager, VinaCapital, and Warburg Pincus, a leading global private equity firm, have closed a deal to create a fully integrated hospitality platform spanning development, acquisitions, and operations across Southeast Asia.

The joint venture is founded on a common vision to become the pre-eminent hotel platform in Vietnam, with a target of expanding into other major hospitality markets in Southeast Asia. The long-term goal is to capture the outsized growth in tourist arrivals, especially from China, to the region over the next five to ten years.

“We are excited to work with Warburg Pincus, a best-in-class private equity firm with deep experience in Asia, to build the leading hotel platform in Southeast Asia,” said Mr. Don Lam, founder of VinaCapital. “The platform is off to a strong start and we look forward to contributing our strong acquisition capabilities and local resources to build a hospitality platform of the highest quality and scale in the region.”

The joint venture will be seeded initially with approximately $300 million in capital commitments from the two parties and best-in-class hospitality assets including a 100 per cent stake in Serenity Holding as well as select resort and city hotels in Vietnam.

Serenity Holding, previously co-owned by Mr. Lam and Mr. Marco van Aggele, is a leading domestic hotel management company focusing on developing and operating specialized boutique resorts and upscale city hotels in Vietnam under its Fusion brand.

The joint venture seeks to aggressively grow its asset base through acquiring, repositioning, and enhancing well-located city hotels in key Tier-1 cities and developing luxury resorts in leading resort destinations in Southeast Asia.

The hotel market in the region is highly fragmented and the joint venture also plans to acquire and partner with prominent hotel management companies and platforms to further enhance its management capabilities and expand its brand and asset coverage.

Founded in 2003, VinaCapital is the country’s leading investment and asset management firm, with a diversified portfolio of $1.4 billion in assets under management. Its expertise spans a full range of asset classes, including capital markets, private equity, venture capital, real estate, and fixed income.

Warburg Pincus has a strong track record investing in real estate in Asia, including in hospitality companies in both China and India. It has invested more than $2.5 billion into 20 companies and projects in the region, including developers, operators, asset managers, and joint ventures in all major real estate asset classes.

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