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VOF invests in CenLand

Released at: 15:28, 09/04/2018

VOF invests in CenLand

Photo: CenLand

Fund outlays $10 million for minority holding in real estate brokerage.

by Linh San

The VinaCapital Vietnam Opportunity Fund (LSE: VOF), the flagship fund of VinaCapital, last week made a private equity investment in CenLand, one of Vietnam’s leading real estate brokerages and the leader in the northern region. It invested $10 million in obtaining a significant minority stake, according to news published on the London Stock Exchange.

Mr. Andy Ho, Managing Director of VOF, said Vietnam’s real estate market continues to grow and yet the brokerage business remains relatively undeveloped. “CenLand is already the top broker in the north, with the majority of its business in primary sales. Its strong relationships with some of Vietnam’s largest developers gives it a significant competitive advantage. We look forward to the company broadening its presence in the secondary market, where opportunities are expected to grow, and to more fully develop and utilize digital sales channels,” he said.

He noted that the terms of investment include downside protections and performance commitments typical of VOF’s private equity deals, as well as a commitment to list by the third quarter of 2018.

Founded in 2002, CenLand is one of the Top 5 real estate brokerage companies in Vietnam, with a sales network of more than 1,200 sales people, nearly two dozen offices, and 400 partners countrywide. In 2017, the company sold more than 11,500 units, thanks in part to its relationships with key Vietnamese developers such as Khang Dien House, Sovico, and the Trung Thuy Group, to name just a few. Its revenue and after-tax profit in 2017 were $48 million and $11 million, respectively. It expects revenue to rise to $61 million this year, a 24 per cent increase over 2017, with 20-25 per cent earnings growth, on the back of forecasted sales of more than 16,000 units in 71 projects throughout the country.

Launched in 2003, VOF is a Guernsey-domiciled, closed-ended investment company. Its investment objective is to achieve medium to long-term returns through investment either in Vietnam or in companies with a substantial majority of their assets, operations, revenues or income in, or derived from, Vietnam.

It is classified as a registered closed-ended Collective Investment Scheme under the Protection of Investors (Bailiwick of Guernsey) Law 1987 and is subject to The Companies (Guernsey) Law, 2008.

VOF is managed by the VinaCapital Fund Management JSC, an entity managed and regulated in Vietnam by the State Securities Commission of Vietnam, a member of the International Organization of Securities Commissions.

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