Experiencing the first quarter of 2023. The market has had rays of light in the M&A market in the real estate sector. Investor information CapitaLand Group is negotiating a deal worth about $1.5 billion with Vinhomes. The deal has not yet been confirmed by both parties. But it is still one of the rays of light that makes the real estate market “hot” again.
1. M&A activities will accelerate than last year
In recent years, investors Gamuda Land and CapitaLand have become emerging “stars”. On the M&A race in the real estate sector in Vietnam
In 2022, Gamuda Land has completed 2 major deals. Including the acquisition of the entire Uni Galaxy Project (Binh Duong) worth 1,300 billion VND. And merged a domestic company to own the Elysian Project in Thu Duc City. In the next 5 years, Gamuda Land aims to launch 10-15 new projects. Vietnam’s position is increasingly consolidated. This is the foreign market with the largest contribution to total revenue in 2022 for Gamuda Land.
On February 2023, Khang Dien Group and Keppel Land Vietnam also signed a memorandum of understanding. To mark the cooperation in developing residential projects and sustainable urban areas in Ho Chi Minh City.
According to real estate market research by Real Capital Analytics Company. There are 05 real estate M&A transactions in Dong Nai, Bac Giang, Bac Ninh, Vinh Phuc, and 02 development lands in Ho Chi Minh City and Gia Lai. With the total value of announced transactions estimated at more than 100 million USD.
This shows that new investors who want to join the real estate M&A market are returning.
2. Opportunities and advice for businesses with financial potential
Since October 2022, the real estate market has slowed down. However, foreign investors who have invested capital in Vietnam before are still very persistent with their strategy.
As for the housing segment, the decline of many domestic real estate businesses. Followed by a series of frozen projects. This is an opportunity for businesses with financial potential to “take over”. After periods of hot growth, the same difficulties in capital for many investors. The demand for project transfer will continue to be strong for many years to come.
Consultants recommend. Investors need to do thorough due diligence at both project and company level. In all aspects of legal, financial and tax matters. Before determining the level of acceptance of the transaction structure and signing the contract. Investors should work with a local investment advisor to leverage their local knowledge. That will bring benefits to investors when implementing their projects.
(Refer to Investment Newspaper No. 37, Monday, March 27, 2023)
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