Instead of foreign investors dominating as in previous years, the situation of the real estate M&A market has changed to domestic enterprises, this trend is expected to continue strongly in the coming time.
Even during the difficult-to-control epidemic period, M&A activities, notably real estate M&A, recorded strong activity.
According to aggregated data of the Department of Competition and Consumer Protection (Ministry of Industry and Trade), real estate is one of the fields with the most M&A deals in 2021, with about 14 business focus announcements. The real estate sector of a number of businesses is received and handled.
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Real estate M&A is still going strong despite the epidemic
TYPICAL TRADES
Also according to data from the Department of Competition and Consumer Protection, some typical large M&A deals in 2021 can be mentioned as Vinhomes Joint Stock Company announced the purchase of 300ha Dai An urban area in Hung Yen province; Nam Long Investment Joint Stock Company completed the acquisition of 100% of the project in Dong Nai from Keppel Land, which also announced the transfer of the Dong Nai Waterfront project.
In addition, Southern real estate giants such as Novaland, Phat Dat, Danh Khoi also announced strategies to continue searching and acquiring land funds to prepare for the next phase.
Meanwhile, as noted by DDDN, many big deals are also in the process of arranging capital sources. The most prominent can be mentioned as Hoang Phu Vuong Joint Stock Company, Osaka Garden and Hoa Phu Thinh with a total capital mobilized from bonds of up to VND 15,500 billion to acquire the Saigon Binh An urban area project.
Or the case of Van Truong Phat Investment and Construction Joint Stock Company, which has issued in 2021 of VND 8,000 billion to buy the Viet Phat urban area project in Long An.
Notably, sharing about plans for the next years, units such as Novaland, An Gia, Phu Long... also said that they will continue to plan to expand land bank through the implementation of M&A strategies in different locations. direction.
Overall assessment of this, many experts said, the size of the real estate M&A market has been larger, the financial resources and apparatus of domestic enterprises are stronger, but it also helps Vietnamese enterprises to be more proactive in their actions. restructuring, expanding the ecosystem, creating new value chains through real estate mergers and acquisitions, an expert said.
Meanwhile, on the side of foreign investors, M&A activities are no longer explosive as in previous years. Figures from the Ministry of Planning and Investment show that in the first eight months of the year, the value of foreign investors' capital contribution and share purchase in the real estate sector reached US$557 million, less than half of the achievement. 1.22 billion USD in the same period last year.
EXPAND SCALES, SEGMENTS
In terms of size and segmentation, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that the market has had more diversity in segment types.
In which, new economic development areas, local infrastructure investment activities are in the early stages of implementation of M&A phenomenon.
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Real estate M&A activities expand to segments such as industrial parks, retail, hotels...
Mr. Dinh added that in the suburbs of big cities like Hanoi, Ho Chi Minh City or other provinces with potential for development but not really exciting, there are also M&A activities of real estate projects.
“ Real estate M&A also occurs in industrial and ecological real estate projects. Especially, during the complicated development of the epidemic, this activity has appeared in the segments that are heavily affected by the epidemic such as resorts, hotels, restaurants, commercial establishments, and retail. Mr. Dinh added.
Meanwhile, according to experts, the race to acquire real estate by Vietnamese enterprises with financial potential through M&A deals in the coming time will continue to be exciting.
The main reason is that the land fund is increasingly scarce, the project implementation procedures are tightened, on the other hand, the weak investors through the epidemic waves are difficult to survive, forced to sell the project or accept the transfer. transfer shares to other investors with better quality.
On the other hand, the epidemic still makes foreign investors afraid to move, accordingly, this is an opportunity to continue to change the situation of the domestic real estate M&A market.
By Diendandoanhnghiep.vn