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VinaCapital eyes second real estate fund
Vietnam's largest asset manager VinaCapital is looking to open its second property investment fund in Vietnam despite its recent sell off of some key holdings.
The U.K.-listed group already has the VinaLand Limited property fund, launched three years ago, on its books.
Chairman Horst F.Geicke, said at the annual investors meeting in Hanoi on Monday, foreign investors remain hopeful of Vietnam’s economic prospects in 2010, Vietnam News Agency reported.
But VinaCapital general director, Don Lam said foreign businesses are still facing the adverse impacts of the global economic crisis, resulting in a tepid flow of foreign direct investment into Vietnam with FDI falling by nearly 80 percent so far this year over the same period in 2008.
VinaCapital’s group’s assets also dropped to US$1.8 billion this year from $2.2 billion in 2007, according to Lam.
But the general director said it would not affect the group’s investment plans in Vietnam.
Lam said the “hot spots” for investment flows next year will be in health services, consumer products, financial services, retail venues and residential areas for middle-income earners.
But short-term speculation on stocks, high-grade apartments and rental offices would decrease in 2010, he said.
“This is a good time for us to set up a new unlisted property investment fund to attract more institutional investors,” Lam said. “This is a new trend that allows investors to join and take better control over their financial activities worldwide.”
Founded in 2003, VinaCapital Group is the leading asset management, investment banking and real estate consulting firm in Vietnam.
The group currently manages three funds, including the multi-sector investment fund Vietnam Opportunity Fund (VOF), VinaLand Limited, and Vietnam Infrastructure Limited, the first fund to invest in Vietnam’s infrastructure sector.
However, the group’s decision to push forward with property has come as something of a surprise given the state of the slumping property market and its decision to sell of key property assets recently.
Early this month, VOF sold its 50.1 percent stake in the A&B Tower office building which is still under construction in HCMC’s District 1. The building is expected to be completed in 2011.
Lam said the company decided to pull out after seeing a declining market in office for rent spaces, and would shift investment into apartments and retail centers.
The group also sold its 70 percent stake in the five-star Hilton Hanoi Opera Hotel in the capital city.
Hong Nguyen
vietnews
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