Overseas investors have continued to increase their investments in Vietnam, with Thailand’s Gulf Energy enhancing its ownership in a solar power facility and Keppel Land acquiring two local real estate companies.
Gulf Energy increases interest in Vietnam-based solar project
Thailand’s third largest energy producer Gulf Energy Development has increased its stake in Vietnam-based TTC Green Energy Investment from 49 per cent to 90 per cent, according to an announcement.
The share purchase is expected to be completed in the fourth quarter of 2019.
TTC Green Energy Investment is the operator of TTCIZ-01 solar project in southern Vietnam. It has an installed power generation capacity of approximately 68.8 MW and has commenced commercial operation in March this year. The availability factor is up to 100 per cent of the installed power generation capacity, allowing the project to operate at full capacity and distribute all the electricity produced to the grid, according to the Thai company.
It reasoned the additional investment in the possibility that the project will yield a decent return and has the potential to support Vietnam’s electricity demand in the future.
In addition to TTCIZ-01, Gulf Energy also owns 90 per cent of TTCIZ-02, a sister project with 50 MW capacity which commenced commercial operation in April 2019. The company also indirectly has 95 per cent shares of Mekong Wind Power, a Vietnam-based business that operates the Mekong Project comprising of a solar farm project and an offshore wind farm project.
Gulf Energy said it has used nearly 1.7 billion baht ($55.4 million) from the proceeds it had gained from the 2017 IPO to invest in power projects in Vietnam and Oman, as of June 2019.
Its IPO raised $733 million in 2017, then marking the biggest corporate IPO in Thailand in a decade.
Keppel Land acquires real estate developers for $110.4m
Keppel Land has completed the acquisition of 60 per cent shares of Phu Long Real Estate, following another 60 per cent stake acquisition of Nha Be Real Estate last month, to develop residential condominiums in Ho Chi Minh City, Vietnam.
Investing S$76 million ($55.2 million) each for the stakes, Keppel has garnered 60 per cent interest in three land parcels spanning 6.2 hectares in Nha Be district, Ho Chi Minh City.
The partners will develop a total of about 2,400 premium apartments with ancillary shophouses, which will offer around 14,650 square metres of commercial space on the sites, Keppel said in a statement.
The total development cost for the project, inclusive of land cost, is estimated at S$425 million.
The acquired sites are located near many public amenities, such as privately invested healthcare facilities and international schools, as well as lifestyle and recreation centres including SC VivoCity, Crescent Mall and Saigon South Golf Course.
Keppel said the acquisition will add to its pipeline of about 20,000 homes and commercial portfolio in Vietnam.
Phu Long Real Estate is a member of Sovico Holdings, an investment group connected to Nguyen Thi Phuong Thao, Southeast Asia’s first female billionaire, according to Forbes. She is the woman behind Vietnam’s first budget airline VietJet and commercial lender HDBank.