Vietnam: VinaCapital invests $10m in real estate broker CenLand

VinaCapital‘s flagship fund Vietnam Opportunity Fund (VOF) has picked up a minority stake in real estate brokerage firm CenLand for $10 million.

“Vietnam’s real estate market continues to grow, and yet the brokerage business remains relatively undeveloped. CenLand is already the top broker in the north, with the majority of its business in primary sales… We look forward to the company broadening its presence in the secondary market, where opportunities are expected to grow, and to more fully develop and utilise digital sales channels,” said VOF managing director Andy Ho.

The terms of investment include downside protections and performance commitments typical of VOF private equity deals, as well as a commitment to list by the third quarter of 2018, Ho noted.

Founded in 2002, CenLand is one of the top five real estate brokerage companies in Vietnam. In 2017, the company sold more than 11,500 units, thanks in part to its relationships with key Vietnamese developers such as Khang Dien House, Sovico, and Trung Thuy Group.

The company’s revenue reached $48 million in 2017 while profit after tax stood at $11 million. This year, CenLand expects revenue to rise to $61 million on the back of forecasted sales of more than 16,000 units in 71 projects throughout the country.

Since the beginning of the year, VOF has made multiple investments in businesses benefiting from strong domestic growth. Last month, it invested $10 million in Ricons Construction Investment JSC, a subsidiary of the country’s leading developer Cotec Construction Joint Stock Company (CotecCons).

In February, VOF invested $32.5 million to acquire a significant minority stake in Ba Huan JSC, the country’s leading eggs and poultry meat producer.

VinaCapital’s flagship fund earlier also invested approximately $45 million into two subsidiaries of PetroVietnam – PV Power and Binh Son Refining and Petrochemical (BSR) – as part of their initial public offerings (IPOs) conducted in January.

Also Read:

Exclusive: VinaCapital invests $10m in Vietnamese realty firm Ricons

VinaCapital acquires stake in poultry firm Ba Huan for $32.5m

VinaCapital invests $45m in PV Power, Binh Son refinery in January IPOs

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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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.