Fecon Foundation Engineering and Underground Construction and the United Arab Emirates based fund Vault Investment have forged a strategic partnership that may lead to a spate of joint investments in the Vietnamese infrastructure and real estate market, Fecon announced on its website.
Vault is the investment fund arm of Nakheel, which is among the five largest property developers in the UAE, and is best known for its land reclamation projects, including the Palm Islands, the Dubai Waterfront, the World, and the Universe islands.
The partnership between Fecon and Vault Investment comes two months after the Vietnamese firm met Nakheel executives in Dubai.
Feconn hopes that Vault will deploy joint projects in Vietnamese infrastructure sector, after showing its works for transportation, real estate and tourism, to the UAE partner.“Following big expos and trade promotion events in the UAE, Fecon has set up its own representative office in Dubai in April. These are the first bricks to build trust between the two companies, and help leverage investment opportunities in both markets,” said Sultan Ali Rashed Lootah, managing partner of Vault Investment.
Under the terms of agreement reached late last week, Fecon will be the Vietnam-based project developer for Vault Investment. In turn, the Middle East fund will elevate Fecon’s operations in Dubai, as well as investments from the UAE companies into Vietnam. “This is a big event for us, as opportunities are opened to us to be able to cooperate with the foreign investors first in Vietnam, as well as to expand our business globally,” Fecon said.
In addition to Dubai, the Vietnamese developer is also exploring synergies with investors from Japan, Belgium, Korea and Czech.
In May, Fecon and Czech’s rail vehicles producer SKD Trade inked a memorandum of understanding to jointly implement a $1 billion project in Vietnam. SKD Trade will be the the focal point for financial arrangement and for calling other investors to the project.
During the Invest ASEAN 2015 in Vietnam, Fecon said it had held talks with a to a group of overseas incorporated investment funds, such as Dragon Capital, CIMB-Principal Asset Management, Sumitomo Mitsui Asset Management,
Fecon, which is based in Hanoi, posted a 27 per cent growth in profit after tax last year. The profit stood at VND130.3 billion ($6 million). Its earnings per share (EPS), within the past quarters, has been stable at around VND3,000, that is higher than several major peers like Hoa Binh Construction and Real Estate, Petroleum Equipment Assembly and Metal Structure, Vietnam Construction And Import-Export Corporation (Vinaconex) and PetroVietnam Construction.