Adventus acquires 100% commercial benefits of Vietnam-based residential project

Visual from the company website

Singapore headquartered Adventus Holdings Limited’s 65 per cent owned subsidiary, Crimson Star Development, has announced that it has reached a deal to acquire the commercial benefits of a residential property development project based in Ho Chi Minh City, Vietnam.

The semi-completed residential project, called VRG Riverviewlocated at the city’s centre – District 1, has a gross floor area of 47,665 square metres with a land area of 5,192 square metres. It encompasses two blocks with a total of 302 apartments.

Crimson Star has been offered the right to buy the entire share capital of Riverview Company Limited (RCL), a joint venture between Vietnam-incorporated Rubber Real Estate and Construction (RRE) and Vinacon Investment and Development Co Ltd, for $300,000.

RRE will inject the project into RCL, and Vinacon will eventually acquire the entire share capital of the JV.

Other rights for Crimson Star include the payment in advance of the marketing fee for the project of $5.7 million, and profit sharing in accordance to an agreed formula or a lump sum to be determined in due course.

The total consideration for the acquisition of the commercial benefits payable by Crimson Star is S$58.7 million, which will be satisfied by a loan to Vinacon worth S$50.6 million and cash payment of $6 million for the acquisition of the rights.

Crimson Star will lend a sum of S$10.1 million to Vinacon as initial payment for the purchase consideration. Further investments by the Singapore firm, if necessary, will also be made through loans.

Adventus’ share in the purchase consideration will be S$38.2 million, funded by its internal resources, sales proceeds and debt financing to be secured by RCL, while the remaining S$20.5 million will be paid by real estate investor Khua Kian Keong, who is holding the remaining 35 per cent of Crimson Star.

“If debt financing can be secured by RCL, funds from the loan may also be used for the payment of the purchase consideration. The loan may be repaid by the sales proceeds from the sale of the apartment units,” Adventus said in a filing to the Singapore Stock Exchange, adding that the deal was reached on a willing-buyer, willing-seller basis.

The company is of the view that Ho Chi Minh City-based project is a strategic investment, which will add tangible benefit and value to the company. “The project represents the group’s maiden entry into the property business. The directors are of the view that the project will provide an additional income stream to the group and enhance shareholder value,” it said.

Related stories:

Foreign investor led M&A deals keep Vietnam’s realty market buzzing despite domestic downturn

Sembcorp JV to build industrial estate in Vietnam

Mapletree Logistics buys warehoues in South Korea & Vietnam for S$42.2m

Gaw Capital buys Vietnam’s Indochina Land Holdings-2 fund at 58% discount

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.