CapitaLand negotiated to buy property assets from Vinhomes

Based in Singapore, CapitaLand is reportedly negotiating to acquire real estate assets in Vietnam from Vinhomes. A deal of that size would mark one of Southeast Asia's most significant real estate transactions in the last few years.

CapitaLand negotiated to buy property assets from Vinhomes

 

Discussions between CapitaLand, majority owned by Singapore state investor Temasek Holdings, and Vinhomes, which has a market value of $8 billion - have taken place for some projects owned by Vinhomes, four sources told Reuters.

Vinhomes, Vietnam's most prominent real estate developer by market capitalization, is part of Vingroup (VIC.HM), the country's largest conglomerate.

One of the sources showed that CapitaLand considered purchasing part of Vinhomes Ocean Park 3 project, a 294-hectare resort city-style development near Hanoi capital, or another project in the northern city of Hai Phong.

The value of this transaction was still being negotiated, and the acquisition reached an advanced phase. The information sources declined to keep the identified due to the matter's sensitivity.

When interviewed by Reuters, CapitaLand Development did not directly comment on any potential deal with Vinhomes. Its representative just said that Vietnam was one of CapitaLand Development's core markets, and they constantly evaluate investment opportunities to expand their presence in the nation.

CapitaLand Development, part of the CapitaLand Group, occurred in 40 countries - develops retail, office, residential, business parks and data centers, among other businesses. It already has a prestigious portfolio of residential projects, such as luxury apartments spanning 4 cities in Vietnam. 

Vingroup declined to say anything about discussions with CapitaLand. 

Vinhomes develops and owns residential and commercial real estate projects in Vietnam, a country with a population of 100 million and was Asia's fastest-growing economy last year.

The economy expanded by 8% last year, the fastest pace in 25 years, backed by strong retail sales and exports but is facing headwinds from a global slowdown.

Vinhomes' net profit declined 26% to VND29 trillion ($1.23 billion) in 2022 from a year earlier, while total revenue fell 27% to VND62 trillion.

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