Property market bustling with M&A this year

Following the tendency last year, Vietnam ’s property market is bustling with a large number of merger and acquisition (M&A) deals that also see the largest volume of trading value.

According to Troy Griffiths, an expert with Savills Vietnam , there is a need to quickly establish capital mobilisation funds by investors who boast a large number of land reserves but face difficulties in accessing capital, resulting in the rising number of M&A deals.

Dang Xuan Minh, Director of AVM Vietnam, M&A research and advisory company, said that the rise in M&A deals in the real estate sector is attributed to the bloom of themarket which was seen in rising property prices, and a considerable amount of capital flown into the market.

M&A is an effective tool to promote revenue growth and restructuring and screen the most competent investors to carry out the projects, Minh said.

He said that with potential in capital, foreign investment funds and enterprises and strong domestic private conglomerates will have advantages at M&A deals.

Since the beginning of this year, the property market has witnessed a series of major M&A deals, as evidenced by Thien Minh Tourism Company’s acquisition of a chain of six hotels and resorts from Hong Kong’s EEM Victoria valued at $45 million and Vinaland Company’s transfer of all shares in a housing development project to a Vietnamese partner, worth up to $10.9 million.

Concerning this activity, Vietnam Investment Review newspaper and the AVM Vietnam Company will host the M&A Vietnam 2011 forum, themed “Time to Deal” in Ho Chi Minh City on June 9.

A seminar on M&A strategy and an exhibition to introduce businesses and investment promotion opportunities will be also held at the event. – VIR

Tags: Vietnam Property market, vietnam real estate market