Japan’s listed real estate group Haseko has agreed to acquire a 36 per cent stake in Vietnam-based construction firm Ecoba, according to a statement.
The quantum of the investment was not disclosed, but sources familiar with the Vietnamese company said it had raised tens of millions of US dollar.
As part of the financing, Haseko will appoint a representative to Ecoba’s board of directors, the Hanoi-based firm said.
Ernst & Young (EY) acted as an adviser for the transaction.
Established in 2000, Ecoba is a construction and project management contractor for urban development, industrial and renewable energy projects. Its client base includes major local property developers such as Vingroup, Trung Thuy Group, Flamingo Group and Alphanam, among others.
“This strategic cooperation between Haseko and our company will help both of us leverage the technology and market potential to further develop our business in Southeast Asia,” Ecoba said in a statement.
The $6.8-billion Japanese firm’s first investment in Vietnam was a capital injection in The Authentic condominium project in Hanoi in 2012. It said it will explore new projects in Vietnam and Indonesia to broaden its presence in the Southeast Asia market.
The Tokyo-headquartered firm has said in its five-year business strategy that it will set aside 60 billion yen ($560 million) for overseas business expansion until 2025. Its plans include establishing a design and construction production system in Southeast Asia, participation in real estate development projects and investments in the US.
Haseko targets to earn 100 billion yen in consolidated ordinary income in the fiscal year ending March 2025, and at least 30 billion yen of ordinary income from its subsidiaries.