Vietnam: Vingroup sells TNR Tower for $110m, raises $134m in bonds

A beachfront project by Vingroup.

Vietnam’s realty major Vingroup has sold an office building within its mix-used project in Hanoi centre to local rival TNR Holdings, for $110 million, the company announced in a recent operational report.

The 30-storey TNR Tower, or the office component of Vingroup’s apartment-to-retail development known as Vincom Centre Nguyen Chi Thanh, was sold last year, giving the group a 130 per cent-plus profit.

In August 2015, American realty service agency CBRE reached the exclusive right to provide leasing and marketing service for TNR Tower, an emerging real estate developer with a series of properties in Hanoi and Ho Chi Minh City.

Pham Thi Van Ha, who founded TNR Holdings and owns 90 per cent of the company, used to served Vingroup as deputy director of project investment, DEALSTREETASIA has learnt.

Besides office and commercial projects, TNR Holdings also has residential buildings under its umbrella, with an aim to supply 20,000 apartments in Hanoi and Ho Chi Minh City within the next two years.

Meanwhile, Vingroup, announced that it had raised VND3 trillion (nearly $134 million) from selling bonds, guaranteed by the Credit Guarantee and Investment Facility (CGIF), a trust fund under the Asian Development Bank.

The bonds yield at 7.75 per cent for the 5-year term and 8.5 per cent for the 10-year term.

“This is the first time CGIF has provided credit guarantee for an ASEAN real estate company, and it also marks its largest transaction in Vietnam,” the Vietnamese $3.7 billion company by capitalisation said.

It will be the long-term but low cost funding source for Vingroup to invest in its unceasing development strategies, the firm added.

“This is an important transaction for us, because it marks our first support to the real estate industry in the high growth ASEAN economies like Vietnam. (…) The transaction has proven the importance of the local currency dominated bond market as a source of funding for real estate companies like Vingroup,” the Vietnamese company cited Kiyoshi Nishimura, chief executive of CGIF.

Also read:

Vietnam’s Vingroup enters Australian property market with $22.5m land deal

Vietnam 2015: Homegrown Vingroup, Masan show robust deal appetite, corner one-third of region’s M&As

Vietnam’s realty major Vingroup spends $468m for M&A deals, diversification

Vietnam: Vingroup to reduce stake in Giang Vo Exhibition Centre

Vingroup drops bid for controlling stake in Saigon Port

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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.