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JLL: Momentum continues in real estate M&A

Released at: 16:30, 25/10/2017

JLL: Momentum continues in real estate M&A

Illustrative image (Source: cafef.vn)

Latest report from JLL notes further M&A activities during third quarter.

by Ngoc Lan

Vietnam’s real estate market continued to see many M&A activities in the third quarter of 2017, with a number of transactions in the commercial and residential sectors, according to the latest report from JLL.

The report noted that in September, VinaLand, the real estate arm of VinaCapital, divested its entire stake in the Vina Square Project, a 3-ha development in District 5, Ho Chi Minh City, to the Tri Duc Real Estate Company for net cash proceeds of approximately $41.2 million, with repayment of shareholder loans included, resulting in an IRR of 3.3 per cent.

Though residential and commercial transactions dominated M&A activities in the quarter, JLL also recorded one industrial transaction, in which Ascendas - Singbridge transferred a 0.3-ha land plot at the Ascendas - Protrade Singapore Tech Park (APSTP) to Koan Hao Technolgy, a Taiwanese manufacturer of self-adhesive labels.

APSTP is a 500-ha new-generation industrial park in southern Binh Duong province that provides industrial space from prepared land parcels, ready-built factories, and other tailor-made solutions.

The JLL report also anticipated that subsequent quarters would continue to see strong demand from a wide range of investors seeking to make the cut in Vietnam’s real estate market, with a particular focus from groups in Japan, South Korea, Singapore, Hong Kong, and mainland China.

With fierce competition and limited supply of good quality stock, it will be keeping an eye on further real estate M&A transactions as investors seek ways to deploy capital quickly and efficiently.

M&A transactions in Vietnam, Q3 2017

Source: Real Capital Analytics

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