VinaLand Limited finishes divestment from My Gia project

VinaCapital acquires $11-million stake in infrastructure construction and real estate developer Tasco JSC, making another step in its investment restructuring initiative. VinaCapital's $11 million buy-in of Tasco is a continuation of the company's strategy (Source: According to newswire DealStreetAsia, Ho Chi Minh City-headquartered VinaCapital, through its vehicle Vietnam Opportunity Fund (VOF), has acquired almost half of the stakes put on private placement by Tasco JSC, becoming a major shareholder. The company put 21 per cent of its post-investment shares up for sale, with the value of roughly $23 million. Next to VinaCapital’s sizeable purchase, Tasco’s management team and other investors also participated in the private placement, taking up smaller shares. Earlier, Tasco announced issuing 50 million new shares to investors. At the time, VinaCapital was to pick up 30 million of these shares, accounting for 12.5 per cent equity in the company. The offer price was VND10,500 ($0.46) per share, which VinaCapital called an “attractive price,” as reported by DealStreetAsia, especially in light of the VND11,700 ($0.51) the shares were traded at on August 7. “This investment is consistent with our philosophy of investing in companies that are focused on the growth of the local economy, and infrastructure improvement is a critical element in Vietnam’s on-going development,” commented Andy Ho, CIO of VinaCapital and managing director of VOF to DealStreetAsia. In 2016, Tasco reported a revenue of $124 million, with a net profit…... [read more]

Ground broken for property project in Hanoi By Thanh Trung - The Saigon Times Daily HANOI - Thang Long Property on Thursday started work on a US$50 million urban development project in My Dinh area in Hanoi. The venture got an investment license on July 29 this year to develop a four-hectare site into a mixed-use office, hotel and retail complex. VinaCapital holds a 65% equity stake in the venture and its local partner, Thang Long GTC, the remaining stake.The Times Square Hanoi is close to Big C shopping center and within a walking distance from the National Convention Centre (NCC) and National Sports Stadium, all located in My Dinh. The project, due for completion in 2011, will see construction of a Grade A office tower and a five-star hotel. The office tower has a proposed gross floor area of 20,000 square meters. Speaking at the groundbreaking ceremony, VinaCapital chief executive officer (CEO) Don Lam said, "My Dinh is the fastest-growing new urban township in Hanoi and the Times Square Hanoi development will be the preeminent mixed-use complex in My Dinh. We believe the Times Square Hanoi will help put My Dinh on the map as one of Vietnam's top new urban destinations." VinaCapital is the leading asset management and financial services group in Vietnam. It manages total assets of over US$1.8 billion under its four funds (NAV figures as of November 30, 2008) including Vietnam Opportunity Fund (VOF), VinaLand Limited (VNL), Vietnam Infrastructure Limited (VNI) and DFJ VinaCapital L.P.... [read more]

VinaLand – a closed-end fund governed by VinaCapital – is attempting to make hay while the sun shines by reviving its $50-million Times Square Hanoi shopping complex, which has been delayed for more than seven years. photo source internet David Blackhall, manager at VinaLand, told VIR that after a long downturn in Hanoi’s property market, real estate in the My Dinh area, where Times Square Hanoi is located, is taking off, and therefore it is high time for the developer to revisit the project. "Things are looking a lot better, and it seems the trend will continue this year, so we are gearing up to restart development and new investment shortly," he said. "As part of our development strategy we are looking at options for large anchor tenants, as they could get involved during the detailed design phase." Although Blackhall did not go into details regarding Times Square Hanoi’s future tenants, he said that the shopping complex would be modified to become a mixed-use project that includes retail space, hotels, serviced apartments, offices, and residential units. Located in a prime location in the western part of Hanoi opposite the National Convention and Exhibition Centre, Times Square Hanoi was once thought to be the most advanced design for a mixed-use development in Hanoi. The $50 million project was licensed as a 65:35 joint venture between VinaLand and its domestic developer Thang Long GTC in 2008. At that time, it was expected to be a complex comprising 20,000 square metres of high-end…... [read more]

VinaCapital's real estate arm VinaLand recently announced that it would finish the revised design for the long delayed mixed-use Times Square Hanoi development this year. Despite a prime location opposite the National Convention and Exhibition Centre in western Hanoi, often considered as the city's future main business district, red tape and re-design issues have delayed the construction of the project since 2008. The $50 million project - in which VinaCapital holds a 65 per cent share, comprises a shopping centre, 24-storey office building, a 240 room hotel and serviced apartment building, and three 54 to 58 storey residential towers totalling over 1,900 apartments. But after ground was broken on the project in May 2008, work on the four hectare site in My Dinh urban township ground to a halt. "Licensing delays coupled with a slow property market have pushed back commencement and a new strategy is now in place," the company announced in its quarterly report released at the end of 2013. "The strategy is to secure a long-term commitment from an international retail mall operator and seek to divest all or part of this land parcel to facilitate an early exit," it claimed as reasons for the long delays. "Obtaining new licences and revising the master plans have been a challenge, which has led to delays. Due to recent changes in the master planning for the area surrounding Times Square, a revised master plan is being sought with a target completion date in 2014," the company said. A Ministry…... [read more]

VinaCapital, one of internationally listed funds operating in Vietnam, has confirmed plans to put many of its many premium property assets in the nation up for sale. But, it says the decision was not prompted by the collapse of the country's real estate market. "It is true that VinaCapital has a plan to sell its stakes in some projects such as the landmark Metropole Hanoi, Sheraton Nha Trang and Movenpick Saigon and several other residential developments," said Andy Ho, managing director and head of investment at VinaCapital. "However, please consider the movements as a normal business strategy." Ho continued: "Each six months, our assets would be revalued by independent firms such as Jones Lang LaSalle or Savills. Based on the revaluation, we would give the good prices for our partners if they would like to purchase. And after a long time holding the stakes in several projects, we would like to do our divestments and find new investment opportunities in the country." Ho's comments reflected VinaCapital's recent decisions to appoint Jones Lang LaSalle to market its 50 per cent stake in the 365-room, French colonial-era Metropole Hanoi and via Savills to sell all of its controlling stakes in Sheraton Nha Trang Hotel & Spa and Movenpick Saigon. The three hotels are among the best known five-star hotels in Vietnam. Some investors have expressed concern that VinaLand, another London-listed fund investing in Vietnamese real estate projects managed by VinaCapital would be closed following the firm's announcement last month that it would…... [read more]

Vietcombank cuts lending interest rates Vietnam Commercial Joint Stock Bank for Foreign Trade, better known as Vietcombank (VCB), has officially announced lowering the lending interest rate. The interest rate easing policy has been approved by the bank's board director board, Nguyen Thu Ha, Vietcombank's deputy general director, told Thanh Nien newspaper. Particularly, the lending interest rate in dong has been reduced by 2 percent per year, commercial loans and short term services at 17 percent per year, short term loans to serve production at 16.5 percent per year, and short term loans for exports at 16 percent per year. VCB's consumption lending interest rate has been also been winded down, of which short term loans will cost 18 percent per year, medium and long term loans at 18.5-19 percent per year and the lending interest rate for securities and real estate sectors at 20 percent per year. However, the reduction of lending interest rates will initially be applied for short term only and mainly for prioritized borrowers such as agricultural e, exports and small and medium sized enterprises (SMEs). With this incentive, at some branches of VCB, the lowest lending interest rate for export is at 16 percent and the highest level for non-production loans is at 20 percent per year. With the this latest move act, VCB is the second largest state-run bank lowering to lower lending interest rates this year, after the Bank for Investment and Development of Vietnam (BIDV) pioneered the move. Previously, BIDV marked the pioneer…... [read more]

Re-design issues continue to hold back construction of VinaCapital's $50 million Times Square mixed-use project in Hanoi. But, the developer said work would get underway shortly. The project - a joint venture between VinaCapital, with 65 per cent, and Thang Long GTC - involves the building of a Grade A office tower with a proposed 20,000 square metres and a 300-room, five-star hotel with high-end retail units. However, after ground was broken for the project in May 2008, the 4-hectare project in Pham Hung street ground to a halt. David Blackhall, deputy managing director of VinaCapital Real Estate, told VIR the last 12 months had seen significant changes in the real estate market and this had required the joint venture company to modify some of the development parameters. This was done to ensure the end product would meet the needs of tenants and investment partners. "The Times Square project is proposing to secure large commercial end-users this year with the view to commence construction at the same time," Blackhall said. Another source from VinaProjects, an affiliate of VinaCapital which is now managing Times Square Hanoi, told VIR that in July 2009 the Ministry of Construction distributed Circular 29/2009/TT-BXD on the adjustment of some articles on the "Regulation on architecture and construction management in areas around the National Convention Centre in My Dinh area" issued in 2007. Circular 29/2009/TT-BXD further detailed the scale, height limitations and functions of a number of projects in the area, including Times Square Hanoi. This meant…... [read more]

Nearly 100 percent of the real estate projects of the famous groups in Vietnam have lost the “.com” domain names coinciding with the names of the projects. Sources said that the owners of the projects have been quietly trying to buy back the important domain names in order to avoid a “media crisis.” In the world, the owners of big projects always register the domain names right after they choose the names for the projects and before following the procedures to set up legal entities, to develop the projects and officially begin providing services. Meanwhile, Vietnamese real estate developers do not have the habit. Experts say that domain names can be described as the “addresses” of the projects, which are indispensable to the establishment of the websites of the projects. The domain names can be used not only to serve the marketing and the sale in the pre-project period, but also in the time after the projects officially become operational. In Vietnam, a series of real estate projects capitalized from tens of millions to hundreds of millions of dollars nationwide, located in advantageous positions still do not have “.com” domain names. These include Becamex Tower, Aroma Luxury Shop, Leman CT Plaza, CT Plaza Saigon, CT Sphinx Golf Residences, CT Plaza Da Nang, Danang Diamond Tower, Sonasea Villas Resort, Sonasea Residences, Sonasea Golf Estates, Dream House Resort, Hapro Center, An Phu Thinh Plaza, Pullman Saigon Centre, Sabeco World Trade Center, Times Square Saigon, Times Square Hanoi, BIDV Tower, Saigon One Tower,…... [read more]

Vietnam had a growing young population and urban middle and upper classes and its market had not yet been fully tapped. However, the country was still relatively poor, with quite a fragile economic environment, Doyle added. During the fever of the Vietnams real estate market in 2006 and 2007, Vietnam suffered from a severe lack of office-for-lease space, which drove a series of real estate investors into developing office buildings. These oversupplied office spaces consequently, under the shadow of the global financial crisis in 2008 and 2009, made the sectors average rentals in CBDs drop by 40-60%. This downward trend had not yet rebounded from that hit. According to CBRE, average rents for HCM Citys prime retail space in the CBD was $99 per square metre, per month. Average prime rents outside of the CBD was $47 per square metre, with the highest rents in the CBD reaching $250. In Hanoi, average prime rents in the CBD stood at $80 per square metre, per month. The average prime rents outside the CBD was $35, with the highest rents in the CBD reaching around $146. Richard Leech, executive director of CBRE Vietnam, said: "Retail businesses at present are only robust in CBDs in both Hanoi and HCM City. One example is the high vacancy rate in District 7 s Saigon Paragon, which was launched in early 2009." Leech added that there were still many risks in retail development in Vietnam, as the country had undeveloped infrastructure and was still dominated by…... [read more]

PANO - Construction of the Times Square Hanoi Complex was started on December 18 th in My Dinh Village, Tu Liem District, Hanoi, by the VinaCapital Group. The US$ 50 million project will include modern offices, a five-star hotel and retail centres. The complex is located on an area of 4 ha near the National Convention Centre, the My Dinh National Stadium and the Big C department store. “Once completed, the Times Square Hanoi Complex will help turn My Dinh into one of the leading urban areas in Vietnam”, according to Don Lam, Chairman of the Group. The complex is expected to be completed in 2011. Translated by Duy Minh - Photo: vietbao... [read more]

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