The Japanese ‘Big Boss’ Partners with Billionaire Pham Nhat Vuong: A Sneak Peek into Their Venture and the Assets Involved

Vingroup (VIC)-owned CTCP Vinhomes (VHM) and Nomura Real Estate, a prominent Japanese firm, have recently signed a strategic Memorandum of Understanding (MoU) for comprehensive collaboration.

According to the agreement, Vinhomes and Nomura Real Estate will work closely together in various fields, including high- and low-rise residential development, commercial real estate (shopping malls and office buildings), logistics centers, and other key real estate projects.

Notably, Nomura Real Estate will increase its investment in Vinhomes’ urban areas and other real estate-related fields in Vietnam.

“Nomura Real Estate is developing large-scale urban projects in Japan and overseas, and Vietnam is one of the most important markets,” said Mr. Matsuo Daisaku, Chairman and CEO of Nomura Real Estate.

Spending VND 10,000 billion to buy back a real estate company in Vu Yen from Vingroup

Prior to this MoU, Nomura was involved in a transaction to acquire 80% of the shares in CTCP Phat Trien NVY Vietnam, a secondary investor in the Vinhomes Royal Island project in Vu Yen (in May this year).

NVY Vietnam’s General Director and legal representative changed from Ms. Nguyen Mai Hoa to Mr. Nobuaki Higashi (Japanese). The company has a charter capital of VND 11,684 billion, with the Japanese shareholder, NVY Co., Ltd., holding 80% of the shares.

Meanwhile, NVY Co., Ltd. is a subsidiary of CTCP Bat Dong San Nomura (Nomura Real Estate Holdings, Inc.). Mr. Nobuaki Higashi also serves as the General Director and legal representative of Cong Ty TNHH Nomura Real Estate Vietnam. The total value of this transaction amounted to VND 10,000 billion.

This is not Nomura’s first real estate investment in Vietnam.

A series of acquisitions in Vietnam

In the Vietnamese market, the Group has quickly engaged in the development and launch of prominent real estate products, such as the Midtown project by Phu My Hung; the second phase of Vinhomes Grand Park; the Sun Wah Tower office building; the Zen Plaza office building, and the Swan Lake Onsen apartment complex.

Currently, Nomura Real Estate is involved in eight residential and office projects in Ho Chi Minh City and Hanoi through a network of companies, including Phu Hung Thai, MV1 Real Estate, and MV Vietnam Real Estate, Zen Plaza, and NVY Vietnam.

As mentioned earlier, CTCP Phat Trien Phu Hung Thai is a joint venture between Phu My Hung and three leading Japanese real estate developers: Daiwa House Group, Nomura Real Estate Group, and Sumitomo Forestry Group. Phu Hung Thai currently owns 100% of the shares of the Phu My Hung Midtown project (District 7, Ho Chi Minh City).

In 2019, Nomura became the sole owner after acquiring the Zen Plaza office building in Ho Chi Minh City. Zen Plaza, located on Nguyen Trai Street (District 1, Ho Chi Minh City), has a total area of approximately 17,000 m2. The building has been operating for 20 years and is almost always fully occupied, with 90% of its tenants being foreign companies, mostly Japanese.

Zen Plaza is the second office building owned by the Japanese group in Ho Chi Minh City. A year earlier, Nomura had acquired 24% ownership of the Sun Wah Tower, a multi-purpose office building in the heart of the city. This was Nomura’s first office building in Asia-Pacific and the third worldwide that they leased out.

Additionally, MV1 Real Estate is a legal entity based in Thao Dien (Thu Duc City, Ho Chi Minh City), specializing in real estate. The company was established in 2020, and its representative is Kazami Naosuke…

In its collaboration with Vinhomes, Nomura Real Estate is expanding its cooperation, especially in the “billionaire island” projects, Vinhomes Royal Island (Vu Yen, Hai Phong), and Vinhomes Grand Park (Thu Duc City, Ho Chi Minh City).

Renowned for the first FDI-invested Industrial Park in Northern Vietnam

In Hai Phong, Nomura is also well-known for the Nomura-Hai Phong Industrial Park, spanning 153 hectares in An Duong district. This was the first industrial park with foreign investment in Northern Vietnam, established by the Nomura-Hai Phong Industrial Park Development Company in December 1994.

In February 2023, the “Nomura – Hai Phong Industrial Park” was renamed the “Japan – Hai Phong Industrial Park.” Accordingly, the Nomura-Hai Phong Industrial Park Development Company also changed its name to the Japan – Hai Phong Industrial Park Development Company.

This adjustment was made due to a request from the involved parties regarding the transfer of Nomura Asia Investment (Vietnam) Pte.’s stake. Ltd. Specifically, a Vietnamese enterprise, CTCP Tap Doan PC1 (PC1 stock code), acquired 70% of the shares from the foreign investor and became the largest shareholder, alongside the Hai Phong People’s Committee, which holds 30%.

How is Nomura performing?

Established in June 2004 in Tokyo, Nomura Real Estate Holdings is one of the largest and most reputable real estate development groups in Japan. According to the company’s website, Nomura Real Estate currently employs nearly 8,000 people worldwide.

In 2023, the group achieved a revenue of 734.7 billion yen (over 119,000 billion VND), a 12.2% increase compared to the previous year, and a profit of 113.6 billion yen (over 18,400 billion VND), an 8.1% increase. This profit level is also the highest in the last five years.

For 2024, the Group plans to achieve a revenue of 790 billion yen (equivalent to 127,396 billion VND) and a profit of 118 billion yen (equivalent to 19,029 billion VND).

Since 2015, Nomura Real Estate has aimed to expand its operations into new markets in Southeast Asia and has been actively developing in the most potential markets. Specifically, in 2017, the group established Nomura Real Estate in Hong Kong (China). In 2019, it established Nomura Real Estate Vietnam and Nomura Real Estate Thailand.