Vietnam: VinaCapital exits Times Square, LienVietPostBank acquires Sacomreal

Sacomreal project design - taken from the company website

New market developments in the Vietnam real estate industry have seen VinaCapital exit the Hanoi-based mixed-use project, called Times Square, selling to Elite Capital Resources Limited. Meanwhile, banking institution LienVietPostBank has decided to purchase bonds of Sacomreal for VND500 billion.

VinaLand exits abandoned project Times Square for $41m

VinaLand Limited, the real estate investment vehicle of Ho Chi Minh City-based private equity firm VinaCapital, has said that it is divesting its entire stake in the Times Square project to a foreign investor Elite Capital Resources Limited.

The land parcel for the project, located in Hanoi, was acquired by VinaLand in 2007.

The transaction will bring net cash proceeds of approximately $41 million for VinaLand, representing a 5.3 per cent internal return rate. An amount of $17 million, or 41.5 per cent of the net proceeds, has been received by the fund while the remaining is subject to completion of conditions precedent expected to be completed by no later than July 2017, VinaLand said in a statement.

The total valuation is 20.4 per cent as per the 31 March 2016 unaudited net asset value, which includes adjustments for additional investments up to the date of exit, the fund said.

In conjunction with the announcement of the divestment, VinaLand said it will conduct a distribution of $40 million to shareholders through a tender offer to purchase ordinary shares of the company.

This tender offer follows the announcement today of the Times Square disposal which in conjunction with several other exits, will enable shareholder distributions to continue in various forms, including share buybacks and tenders, and is a good outcome for shareholders as we continue to maximize shareholder value,” said VinaLand’s managing director David Blackhall. 

Located in the emerging business district in the capital city, Times Square is a 65:35 joint venture between VinaCapital and Thang Long GTC, a unit under state-owned hospitality group Hanoi Tourist, according to local media. The planned mixed-use project has a committed investment capital of $50 million with a ground-breaking occurring in 2008. However, the development has been abandoned since then.

Also read: 

Vietnam: Vinacapital exits realty project; Evolable Asia buys Punch Entertainment

Sofitel Legend Metropole Hanoi acquired by Warburg Pincus-VinaCapital platform: Savills

LienVietPostBank to invest $22m in property firm Sacomreal

Hanoi-headquartered LienVietPostBank will invest VND500 billion ($22 million) in listed property developer Sacomreal by purchasing the company’s bonds with a tenure of 42 months, the bank has announced.

However, details regarding interest rates were not disclosed.

Sacomreal, at the end of last year, said it aimed to raise fund by issuing the notes equal up to 20 per cent of its charter capital (VND2.28 trillion) to institutional investors.

The company looks to invest in new projects and expects to achieve this year’s net profit of VND208 billion, which is more than 20 per cent higher than 2016 result.

LienVietPostBank is a small Vietnamese lender compared to industry peers. State-owned Vietnam Post Corporation has a 12.54 per cent stake in the bank, while Him Lam JSC, a realty major, owns nearly 15 per cent.

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. 
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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.