PHI Group enters competition in Vietnamese real estate market

PHI Group and MHD will establish a real estate sub-fund and invest and develop property projects together. Illustration image

Recently, PHI Group signed a Memorandum of Understanding (MoU) for a comprehensive cooperation to partner up with Hanoi MHD.

According to the MoU, PHI will assist MHD to become a publicly traded company in the US or international stock markets.

Besides, PHI will engage MHD for the execution of its building projects in Vietnam, simultaneously, the two parties will cooperate to establish and invest in a real estate sub-fund under the master Reserved Alternative Investment Fund (RAIF) set up by PHI in accordance with the Luxembourg Institutional Bank Fund regulations.

It is expected that the size of the real estate sub-fund will increase substantially over time to meet the growing needs of investment and development in the Vietnamese real estate market.

In addition, the two firms will cooperate to jointly develop and implement various real estate projects in Vietnam, while simultaneously coordinating with international partners to develop and provide innovative construction materials with new technologies to Vietnam and other Southeast Asian markets.

Furthermore, MHD and PHI will cooperate to finance or invest in other third-party real estate and hospitality projects in Vietnam as opportunities arise.

PHI Group was instrumental in taking the first Vietnamese company public on the US' stock market in the past (Cavico Corporation, which used to be listed on Nasdaq) and is currently engaged in the areas of agriculture, renewable energy, real estate, consumer goods, and mergers and acquisitions in Vietnam. PHI Group will assist in taking MHD public in the US' stock market and creating a platform for MHD’s growth and expansion in the future.

Nguyen Thanh Tung, chairman and general director of Hanoi MHD, stated that co-operating with PHI Group helped Hanoi MHD to participate in the development of the real estate sub-fund under the Luxembourg Institutional Bank Fund as well as other business opportunities that can capitalise on our expertise and experience to create significant values for all stakeholders that would otherwise not be possible.”

Henry Fahman, chairman and CEO of PHI Group, said, “As we continue to focus on a number of key long-term programmes in Vietnam, we are delighted to have MHD as our partner in the real estate investment and development sector.”