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Techcom starts first real estate investment trust in VN
Fund management company Techcom Capital is offering units in its Techcom Vietnam Real Estate Investment Trust, the country's first public REIT.
With a charter capital of VND50 billion (US$2.2 million), the company, a wholly owned subsidiary of Techcombank, expects to sell five million units of VND10,000.
The fund's custodian and administrator is the State-owned Bank for Investment and Development of Viet Nam.
Investors can register to buy a minimum of 100 units until March 9 next year with Techcom Securities, the REIT's exclusive distributor.
TCREIT focuses primarily on cash flow-generating properties such as office buildings, shopping malls, hotels, and resorts. TCREIT is expected to be listed on the Hanoi Stock Exchange next year.
Viet Nam's real estate market outlook remains highly positive as a result of strong domestic and foreign demand for accommodation and property assets.
However, the high initial investment and low liquidity dissuade retail and institutional investors from participating in large projects with stable cash flows.
TCREIT enables the securitisation of real estate projects into fund certificates that give investors partial ownership.
Furthermore, since it is expected to list, TCREIT will have high liquidity.
Techcom Capital plans to use the majority of the profits from investments to pay dividends, creating a stable income stream for investors.
Nguyen Xuan Minh, chairman of TCREIT, said: "TCREIT, along with the Techcom Equity Fund (TCEF) and Techcom Bond Fund (TCBF), will be another diversified investment choice, especially for individual investors, in Viet Nam.
"Individual investors in Vietnam have mainly been investing in residential projects such as apartments or land. Now, they have a chance to take part in owning office buildings, shopping malls and hotels - projects that generate regular and stable income with high liquidity."
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