In addition, Creed Group, which manages a portfolio of $5 billion assets, will provide 50 per cent of the capital for An Gia’s project, providing “Japanese quality” housing services in Ho Chi Minh City, reported the city’s government portal.
“This is just the first step in our partnership. If the Vietnamese property market is well developed, Creed Group will inject hundred million dollars more in An Gia,” said the fund president Toshihiko Muneyoshi.
He added that the Vietnamese economy is becoming deeply integrated (with the world economy), as the Trans-Pacific Partnership agreement comes to close. “It will expedite the opportunities to attract more foreign investment into the country.”
Vietnam has a young population, most of whom are based in urban cities, but the land area is limited. Meanwhile, the law on real estate has been revised in a more favourable way. These elements have united to unfreeze the purchasing power, while providing investment opportunities for both local and overseas firms, Muneyoshi added.
According to the portal, Nguyen Ba Sang, chairman and CEO of An Gia said: “The cooperation with Creed Group will assist our company with a strong financial resource to deploy the projects. We aim to supply 2,000 medium level and luxurious apartments every year, to reach the total of 10,000 apartments by 2020, in Ho Chi Minh City, with a total investment of $1 billion.”
The spokesperson from An Gia was not available for comment at the time of filing this story.
Currently, An Gia is developing four properties worth VND3 trillion ($138.24 million), while negotiating to acquire 10 land areas in major districts of the southern city.
The Creed Group began to invest in the Vietnamese real estate market last year, through a contract with 577 Investment Corp, to jointly develop 10,000 apartments in Ho Chi Minh City.
Many other global real estate investors are eyeing Vietnam, particularly real estate in and around Ho Chi Minh City market. Most of the foreign realty players are increasing their exposure in Vietnam by increasing stake in local real estate firms.
Khang Dien Investment and Trading House JSC has stakeholders like VinaCapital (21 per cent), Dragon Capital (16 per cent) Finland’s Mutual Fund Elite, Vietnam Holding Limited and Saigon Asset Management.
Meanwhile, US-based Warburg Pincus and the $3.4 billion alternative investment group Global Emerging Market have recently been active with their additional investments in larger property developers like the Vingroup, Hoang Anh Gia Lai Group and Hoang Quan Group.