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SonKim Land raises $100mn from Japanese investors

Released at: 11:45, 28/12/2016

SonKim Land raises $100mn from Japanese investors

Photo: SonKim Land

Japanese investors pour capital into Vietnamese property firm through an investment fund.

by Hong Nhung

Vietnamese real estate developer the SonKim Land Corporation has announced it successfully raised $100 million from Japanese investors through the Lemon Grass Master Fund investment fund, which sees it complete its calls for international investment capital in 2016.

“Capital disbursement comes in two phases,” a representative from SonKim Land told VET. “The first phase, of $46 million, was injected on December 21, while follow-on funding of $54 million is scheduled to come in the first quarter of 2017,” she said.

After its very first investment of $37 million in 2013, the Lemon Grass Master Fund’s second capital contribution confirms the strategic partnership between foreign investors and SonKim Land and expresses the confidence of Japanese investors in the steady development of the company as well as the huge potential of Vietnam’s real estate market in the years to come.

It also reflects the trust among foreign investors in SonKim Land’s strategies, potential and development plan. “We are very pleased with the strong commitment and belief from our Japanese investors,” Mr. Nguyen Hoang Tuan, Chairman of SonKim Land, said.

This investment will help SonKim Land increase its portfolio and strengthen its leading position in the luxury high-end residential market. Japan was the largest source of foreign direct investment (FDI) in the real estate sector in 2016.

SonKim Land, founded in 1993, is a developer in the high-end property segment, with assets such as housing, hotels and office buildings, and is also involved in the retail sector.

Last year it sealed a joint venture with the Hong Kong investment group Hamon to develop the $100 million Gateway Thao Dien residential complex in Ho Chi Minh City before partnering with Hongkong Land in The Nassim. Both projects are slated for opening in 2017.

Vietnamese developers have recently attracted new investments from overseas consortiums, fueled by a recovering real estate market, with a projected resurgence in the hospitality sector.

Last month Novaland, one of the local leading real estate businesses, said it had raised $120 million by selling 10 per cent of the company to 18 investors, most of which were foreign financial institutions. The fund raising was completed ahead of its intended IPO in 2017.

Vietnam-based real estate investment fund Indochina Capital and a Japanese contractor along with real estate developer Kajima Corporation sealed a $1 billion joint venture a few months ago to invest in Vietnam’s real estate market.

Many other overseas investors have also launched funds to invest in Vietnam’s property market, including global private equity firms. “The real estate market in Vietnam is maturing and developing rapidly, presenting many opportunities,” Indochina Capital said in a statement.

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