According to the Vietnam Association of Realtors (VARS), in the past six months, foreign investors have maintained their interest in domestic real estate projects. Later on, the level of interest increased. Projects that have completed legal procedures are the hunting target of many investors.
According to the Vietnam Real Estate Brokers Association (VARS), M&A activities (purchase and sale, merger) took place excitingly with a series of large deals. Real estate businesses acquire more large land banks, from apartment projects to real estate industrial, office,…
Recently, entering the period of “difficult cash flow”, investment procedures problems, prolonged legal , decline in liquidity, increasingly difficult loan conditions have forced businesses to consider selling a part. This is the way to help businesses manage cash flow to repay debt, avoid collapse, dissolution and bring cash flow to continue implementing other projects.
In the latest report on the real estate market, VARS said that, in 6 months, foreign investors are maintaining their interest in domestic real estate projects. Later on, the level of interest increased. Projects that have completed legal procedures are the hunting target of many investors.
Foreign investors who are carrying out acquisitions of real estate projects in Vietnam mostly come from Korea, Singapore, Japan, Taiwan, Malaysia, Thailand… There are only a few Vietnamese enterprises. , has enough potential to join the game with small and medium-sized deals.
“Keppel Land, Frasers, WHA, Central Retail… are foreign names that have been and will be looking for M&A opportunities in the commercial, residential and industrial real estate segments. In addition to businesses in the industry, investors from other fields are also looking for opportunities to enter and expand their portfolios into the real estate industry,” said VARS.
The main method of buying, selling and transferring is still receiving the transfer of shares in the project enterprise. Some deals have separated project businesses for foreign partners to buy outright, this is also an option preferred by foreign partners.
The number of investors looking for partners to transfer or cooperate in project investment is very large. Instead of maintaining “price expectation”, investors gradually show their willingness to negotiate with the hope that negotiations will soon be successful.
According to VARS, by the end of the second quarter of 2023, most of the new M&A deals are only taking place in the early stages – the search and survey phase, and have not yet reached the negotiation and closing stages.
VARS experts said that in the coming time, M&A activities will continue to be exciting. The deals that complete the exploration and survey in the second quarter will continue to move to the negotiation and negotiation stage in the third quarter and it is likely that the market will witness the first few successful deals in the fourth quarter of 2023. .
“However, the number will not be much and will be limited to small-scale projects with complete legal basics. Medium and large-scale deals will continue to maintain the negotiation process until the end of the fourth quarter of 2023, even extending to the second quarter of 2024. When M&A is successful, it will contribute to improving supply. Unfinished projects that meet investors with financial potential will quickly be restarted. Business owners who receive money from M&A also have a source to return to implementing remaining projects,” VARS experts said.
Commenting on the current wave of M&A in the real estate market, Mr. Nguyen Chi Thanh, vice president of VARS, said that if domestic investors do not seize the opportunity, good projects will belong to foreign investors. outside.
Mr. David Jackson, General Director of Colliers (Vietnam) said that Vietnam’s real estate market has a lot of growth potential in the long term. This is why real estate businesses and foreign investment funds take advantage of the time when the domestic market slows down to increase market share in Vietnam.
Mr. David Jackson revealed, Colliers receives requests from investors mainly from Northeast Asia, North America and Europe, with properties that closely meet real needs are actively targeted. This expert evaluates mergers in a positive way when creating new factors. This is expected to improve future supply, bringing more quality and diversified products to the market. In addition, this is also an opportunity for foreign enterprises to cooperate with domestic enterprises to maximize their strengths and understand policies and procedures in Vietnam.
