ACA Investments, the Singapore-based private equity firm that recently participated in the upsized funding of Vietnamese property developer Son Kim Land, said it is targeting to raise up to $100 million for investments in Vietnam over the next three years.
The firm has earlier raised as much as $70-million for its Vietnam vehicles from where it has deployed capital into two projects, that includes investment in Son Kim Land, Hiroyuki Ono, partner at ACA Investments, told DealStreetAsia.
ACA Investments infused $41 million in Son Kim Land’s latest round of financing, which was upsized to $121 million with participation from Hong Kong-based EXS Capital, Skymont Capital and Credit Suisse.
ACA Investments had earlier invested $10 million in the Vietnamese company.
Ono said the private equity firm continued to invest in Son Kim Land because it saw sizable growth potential for the Vietnamese real estate company, which could be facilitated through partnerships.
“We are trying to connect Son Kim Land with other investors to give more credential to the firm’s operations. An IPO is also in prospect, however, we do not rush into IPO but instead take careful steps,” he said.
The second investment out of the $70-million corpus was made into a residential project, Ono revealed.
Having invested in other industries such as technology and retail, ACA Investments’ next activities in Vietnam would focus on real estate. In an earlier interaction with us, Ono said the approach towards real estate stemmed from its limited partners’ interest in the sector. Japan-listed property groups contributed about half of ACA Investments’ fundraising for Vietnam.
Daiwa Securities Group, which acquired a 34 per cent interest in ACA Investments last year, also has created access to retail assets for the firm through Daiwa’s regional fund.
Over the past few years, ACA Investments has invested in Vietnamese businesses such as mom and baby product retailer Bibomart, Viet Thanh Technology and Cat Dong Trading and Services. With the new $70-million fundraise, Ono said, it brought the firm’s total capital infused in Vietnam to over $100 million.
He added that ACA Investments will continue to invest in the country on a deal-by-deal basis in the near future, given the flexibility in deal-making for both the firm and its portfolio companies.
“I am now more into warehousing, industrial and commercial real estate. As the market evolves, these asset types create more sustainable investment opportunities,” he opined.