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.