A series of real estate projects have been revived thanks to the acquisition and sale of businesses. This not only helps companies balance the financial but also solves the inventory.
Due to the impact of the real estate market downturn in the period of 2009 – 2013, in HCM City alone there are more than 14,000 apartments in stock, hundreds of “blanket” projects, many enterprises have had difficulties, they tried to transfer the project to balance the finances.
Since 2014, the market has begun to see the rise of capable domestic investors, taking over to re-launch the struggling projects and eventually becoming the runner-up in the M & A race. With a balanced position, the handshakes between foreign and domestic companies appear as an inevitable trend.
On March 12, An Gia Investment and Japan’s Creed Investment Fund announced the completion of the acquisition of seven blocks under the Lacasa Residential Complex project in District 7, Ho Chi Minh City from the Group. Van Phat Hung. In particular, phase 1 An Gia Investment has bought 2 blocks in March 2015. This is also the sixth project implemented by this company in the form of M & A in the past.
Mr. Luong Si Khoa, Vice Chairman of An Gia Investment Management Board, said: “After the acquisition of the project, we will fully exploit the advantages of location, improve a design, adjust prices and offer effective customer and sales strategies. This is how An Gia Investment has applied to five previous M & A projects and has been successful. “
Residential complex Lacasa is about 6ha with 2,000 apartments, with a total investment of about 3,500 billion. This will continue to be a project in the middle-class segment, so An Gia Investment has spent more than 3.5ha of land to build utilities serving residents.
In order to develop the project, Creed Group is committed to pouring $200 million into An Gia Investment, so the company has trillion dongs.
Prior to that, Creed Group and An Gia Investment quickly accelerated the acquisition of old projects. The first is to develop Angia Riverside and Angia Skyline projects from two blocks of the Lacasa project acquired by An Gia Investment in phase one. Currently, 90% of the 800 apartments have been sold.
In essence, before the Creed Group took part, An Gia Investment also carried out a series of over-the-counter acquisitions. All are “revived” after the transfer to An Gia Investment.
Typically, the Garden Project of Tan Phu District acquired by Nakyco Investment Co., which was handed over to customers in June 2016 has rapidly increased by 40%. The project of Angia Star in Binh Tan District acquired by Tan Binh Construction Investment Joint Stock Company is also expected to be handed over in the second quarter of this year.
Stephen Wyatt, General Director of JLL Vietnam, said that 2017 will be the record year for M & A real estate. “Vietnam’s economy is constantly improving with positive economic indicators and is recognized as one of the most promising markets in the Asia-Pacific region,” said Stephen Wyatt.
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