Race to the new finish line
Saphire Real Estate Investment and Business Corporation Limited (Saphire), a subsidiary of Nha Khang Dien Investment and Business Joint Stock Company (stock code: KDH), has just approved a plan to acquire 99% of the charter capital of Loc Minh Real Estate Development Joint Stock Company for a value of 350 billion VND.
Loc Minh was established on May 5, 2022 in Ho Chi Minh City, and is the investor for the Loc Minh Company High-rise Residential Area project with an area of 1.9 hectares (Binh Trung Dong ward, Thu Duc city). Thus, after Saphire acquires Loc Minh, Nha Khang Dien will indirectly own this project.
Nha Khang Dien will indirectly own the 1.9-hectare Loc Minh Company High-rise Residential Area project.
Similarly, Hai Phat Investment Joint Stock Company (Hai Phat Invest – stock code: HPX) plans to spend over 434 billion VND to acquire 99.8% of the charter capital of Ky Son Green Development Investment Joint Stock Company. Ky Son Green was established on December 8, 2016 in Hoa Binh, and operates primarily in the real estate business. Its legal representative is Mr. Phan Van Dien.
This company and Telin Group are jointly developing the Ngoc Dao Resort Villa Project in Hoa Binh, which covers an area of 35 hectares and has a total investment capital of approximately 234 billion VND. The project is expected to provide the market with 350-450 adjoining houses and villas.
Ha Do Group Joint Stock Company (stock code: HDG) has proposed to Ninh Thuan province to invest in two industrial clusters, Phuoc Nam 1 and Phuoc Nam 2, near Ca Na Industrial Park. Each cluster has a scale of 50 hectares and will focus on industries that have minimal environmental impact and employ advanced technologies.
In addition to expanding into the industrial real estate sector, Ha Do also plans to carry out several M&A transactions to accumulate land for the development of urban area projects in many northern provinces such as Hung Yen, Thai Binh, Nam Dinh, Quang Ninh, with the goal of expanding its business operations into multiple sectors.
TH Group Joint Stock Company has proposed to Lam Dong province to invest in the Dankia – Suoi Vang National Tourism Project. According to the plan, the project has a total area of nearly 4,000 hectares, including a portion located in Lac Duong town, Lac Duong district, and a portion located in ward 7, Da Lat city. The project has a total investment value of up to 30,313 billion VND and will be implemented through a bidding process to select the investor.
Novaland is actively developing new land despite being in the process of restructuring.
Novaland Group (stock code: NVL), despite being in the process of restructuring, is actively developing new land. Specifically, Novaland has just proposed to invest in a resort and tourism complex covering nearly 437 hectares in the Mui Yen area, Binh Thuan province. In addition, this company is also working closely with Lam Dong province to implement the Lam Vien Plateau Tourism Resort Complex and Entertainment Project, which it had already proposed in 2022.
Dat Xanh Group (stock code: DXG) has also announced that it is seeking land with an area of 100-200 hectares throughout the country with clear legal status for projects in the 2024-2025 period. Dat Xanh also plans to acquire existing project land in areas with high urbanization rates and can be developed quickly to provide housing products that meet real needs.
Phat Dat Real Estate Development Joint Stock Company (stock code: PDR) will focus on finding land to develop high-end products in Ho Chi Minh City and Da Nang. In addition, the company will develop model urban areas in second-tier cities (Binh Dinh, Phu Yen, Lam Dong, Khanh Hoa, and Dong Nai). At the same time, Phat Dat is also investing in the resort real estate model in areas with tourism potential (Phu Quoc, Binh Dinh, and Ba Ria – Vung Tau).
For the industrial real estate sector, Phat Dat will continue to utilize domestic and foreign resources to expand its land and accompanying social housing segment, focusing on localities with potential for industrial development (Binh Duong, Dong Thap, Ba Ria – Vung Tau, Da Nang…).
In addition, other major companies such as Ecopark, Hoang Huy, TNG Holdings, Vinhomes, Eurowindow… are also actively participating in project development from large land funds ranging from 50 to 150 hectares in Lam Dong, Long An, Hai Phong, Binh Thuan…
Domestic companies make a comeback
According to Ms. Trang Bui, General Director of Cushman & Wakefield, in the race to expand land in 2023, foreign companies hold the advantage . However, the 2024 market will witness a stronger return of domestic companies after two years of restructuring. The trend this year will be for domestic companies with strong financial potential to continue the race to acquire clean land, while foreign companies will focus on acquiring projects that are facing financial difficulties.
“The investment appetite of companies at this time is for projects with clean, high-quality land, genuine value, legal ownership, complete compensation and clearance, and development potential,” said Ms. Trang Bui.
The Q1/2024 market report by Dat Xanh Services Real Estate Economic and Financial Research Institute (DXS – FERI) shows that the race to acquire land in the market is becoming increasingly diverse. Investors are targeting many new localities, such as Vinhomes investing in urban areas in Long An, Can Gio, Cam Lam…; PV Invest “moving south” with a project on Dai Phuoc Island; southern investors expanding “north” such as CapitaLand, Keppel Land, Phu My Hung…; Ha Do considering developing urban areas in Kien Giang, Hung Yen, Nam Dinh…
Dr. Pham Anh Khoi, Director of DXS – FERI, affirmed that the M&A market is also diverse in terms of types. Of which, industrial real estate is currently the channel attracting the most attention from investors. Capital flow is also trending towards and increasing in the resort real estate, hotel, office, and retail segments.
The real estate market is showing many positive signs and is considered to be recovering.
“There are many “new players” entering the market. These include Central Pattana Group (Thailand) entering the retail market in Vietnam; TH Group proposing to invest in
