Recent developments in the deal landscape in Vietnam saw VinaCapital, the country’s leading asset management firm, fully divest a township project located in Dong Nai province. In another deal, Evolable Asia of Japan acquired Punch Entertainment Vietnam, a game developer.
VinaCapital fully divests Dai Phuoc Lotus
Vietnam Opportunity Fund (VOF) and VinaLand Limited (VNL), two investment funds managed by VinaCapital, have announced the divestment of their entire stakes in Dai Phuoc Lotus, a soon-to-be residential and township development in southern Vietnam, to companies of the China Fortune Land Development Group.
The 198.5 hectare site, acquired by VNL in 2007 comprising six development zones, is currently undergoing its first phase of construction and sales in one zone. A further zone has also received master plan approval for development.
Following the exit, VOF and VNL will receive net cash proceeds of $16.5 million and $48.8 million, respectively. The divestment gave a three per cent internal rate of return to the real estate vehicle.
The transactions were made in line with VinaCapital’s strategy to reduce its direct real estate holdings.
“With the closure of this divestment, VOF’s exposure to direct real estate falls to approximately 5 per cent of total NAV. This is a significant milestone in the company’s ongoing strategy to reduce direct real estate holdings, and enables VOF to remain opportunistic in areas of the market where we see significant upside, namely privately negotiated deals and OTC investments,” said Andy Ho, managing director of VOF.
Meanwhile, VNL director David Blackhall said that the proceeds from this divestment as well as past and future disposal money will be used to cover VNL’s commitments including operating costs and distributions to shareholders.
VOF’s net asset value by April 7, 2017 had reached $922 million, while VNL’s value stood at $298.8 million in the end of March 2017.
Evolable Asia acquires Punch Entertainment
Financial details of the deal were not disclosed.
Post acquisition, which is expected to complete by May 16, Punch Entertainment Vietnam will become a subsidiary of Evolable Asia.
The Japanese buyer said that the mobile game industry is snowballing in Japan and will continue to grow in 2017. In response to the increasing needs for game development, Evolable Asia looks to expand the business through Punch’s track record of providing games on multiple platforms for publishers in the US as well as other countries.
DeNA acquired the Vietnam-based company from US firm Punch Entertainment in 2011 to enhance the engineering staff for its social gaming network.
Punch Entertainment Vietnam was founded in 2005 and currently has a capital base of more than $504,000, according to an announcement by Evolable Asia.
The acquisition will boost Evolable Asia’s offshore IT team to more than 700 people, the company said.
Evolable Asia, with offices in Hanoi, Danang and Ho Chi Minh City in Vietnam, has been reviving its presence through partnership with other Japanese companies. Earlier this month, its Vietnam-based unit formed joint ventures with GREE and Dentsu, GREVO Co Ltd and Dentsu Techno Camp, respectively, to provide games and apps as well as digital marketing services.