SGX-listed Frasers Property has announced that it will buy 75 per cent stake in Ho Chi Minh City-based Phu An Dien Real Estate Joint Stock Company (PAD) for VND799 billion ($34.3 million), according to a disclosure on the Singapore Exchange.
The Singapore-based realty major, through its subsidiary Frasers Property Investments (Vietnam), will sign a conditional share purchase agreement with Tran Thai Lands Company Limited to acquire the 45 million shares or 75 per cent stake in PAD.
The price for PAD was arrived at on a willing-buyer, willing-seller basis, based on the estimated net asset value of PAD at completion, taking into account the value of the property, Frasers Property’s announcement said.
PAD will undertake the development of a residential-cum-commercial project in Vietnam. The project will be on a mixed-use development plot in Linh Trung Ward, Thu Duc District, in Ho Chi Minh City.
Frasers Property Vietnam made its foray in the country in 1999 with the development of a 22-storey retail/office building Me Linh Point Tower in District 1, the Central Business District of Ho Chi Minh City.
SGX-listed Frasers Property has been actively picking assets overseas. In February, it announced that it will acquire a property portfolio of 22 assets, owned and managed by Alpha Industrial Holding, in Luxembourg. The deal also covered the acquisition of the project and asset management business of Alpha Industrial through the purchase of the entire issued share capital of Alpha Industrial GmbH & Co in Cologne, Germany.
Vietnam’s real estate market has attracted foreign capital to the tune of $5.54 billion, accounting for 27.3 per cent of total foreign direct investment poured into the country in the first half of the year, according to the latest statistics released by the Foreign Investment Agency.
Like many other emerging markets, merger and acquisition (M&A) activity in real estate in Vietnam has been active. In the first quarter of this year, Vietnam’s real estate sector saw M&A reach a total of $200 million, according to JLL estimates.