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M&A Real Estate: Reverse Takeover Tendency



The Real Estate market is witnessing many mergers and acquisitions of internal enterprises, which have financial potential.


In particular, these domestic enterprises in real estate market in Vietnam don't passively wait but
actively search for the projects and land to develop. Especially, these enterprises effort to take over super projects of the foreign investors. This trend has exploded for 2 years.

The top M&A deals in Vietnam

Recently, the report of the Mergers and AcquisitionsForum 2016 (M&A) has shown that the real estate market is continuously one of the branches that occupy the large proportion of M&A deals in Viet Nam. This is one of the fields that attract the foreign investors as well as the domestic investors who have strong potential.

In the past, the foreign enterprises gained the upper hand in the project M&A race; and in 2016, the internal enterprises has officially overturned the circumstance and turned back to take over the super projects of the foreign enterprises.

Another recent deal is that Novaland officially received the transfer of Da Phuoc international urban area project with more than 180ha of land size with the  initial investment total  of 250 million USD from Daewoo. Before this, the enterprise had also taken over the Nam Rach Chiec
project with 30ha land size from Vina Capital.

Another remarkable deal recently is that Rang Dong group has taken over the five-star resorts complex, which was built in Phan Thiet, Binh Thuan for the Ocean Dunes project invested by American billionaire Larry Billblom- the founder of DHL company.Then, this enterprise cooperated with Green Real joint- stock company- one of the leading in investment and real estate company in Ho Chi Minh city to invest inprojects together.Therefore, this project showed the switch when presented to the market.

According to Green Real company, the only after a month openning the market probe selling, they sold more than 300 villas. This also makes the real estate market in Phan Thiet more active. In this Octorber, Green Real will officially invest this project in the Northern of Vietnam.

Ocean Dunes is a complex of villas, shophouses and condotels on the scale up to 62ha in the central of Phan Thiet with total invesment up to 2600 billions VND. When completed, the project will supply about 1515 shophouses, villas with sea view and about 5000 high class apartments to the real estate market.

The project owns the prime location in central of Phan Thiet- the crossroads with two best roads in the city, Nguyen Tat Thanh boulevard and Ton Duc Thang boulevard, close to the Doi Duong beach, three sides covered by eighteen- hole Golf yard and being on the opposite of  Novotel hotel.

Before this, BRG group also usurped Kings’ Island Golf Resort owned by the joint- venture between a Thailand investor and an domestic enterprise.

Real estate enterprises searche for nice land actively

The real estate experts show that the hot growth in recent years results in the scarity of nice site in the central areas, especially Ha Noi, Ho Chi Minh city, Da Nang and some tourist resorts such as Phu Quoc, Nha Trang...

Therefore, transfering commercial affairs will continuously happen and the buyers will be the investor who have financial potential and determination.

Mr. Stephen Wyatt, the  CEO of JLL Vietnamese company, judges that in the recession period of the real estate market from 2009 to 2013, most of the seller were the domestic investors who were having difficulty in capital and managing to find out the output problem.

From 2014, the market has witnessed a reserve tendency. This was domestic investors, who had strong capital potential, actively searched for the projects and land to develop...

The Vietnamese real estate enterprises is arguably competitive with the international companies. On the other hand, the domestic investors are more and more appreciated due to the advantage, which is the well understanding about the market, legal system, the list of the properties set up with the capital potential and developing projects experiences accumulated from time to time.

This is also one of the biggest changes of Vietnamese real estate for 10 years. The M&A estate has never been strong before.

However, the market has suffered from the period of buying back the projects with the main aim of “holding land” for the best chance. But now, the finding land and buying back the projects are quite apparent.

The activities of M&A real estate in forecast will continuously be active in the next time, due to the positive innovation of  policy about the real estate market.

Besides, the foreign capital is also being strongly invested in properties, on the first 9 months of this year, the whole coutry attracted 34 new projects with 1 billion USD of the total capital in this field.

Property Consultant
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