Property developer sells assets to Hong Kong company

Hyatt Regency Da Nang resort. VNS Photo Cong Thanh

The property company said several assets have been sold, as part of its unwinding process, to a fund managed by Gaw Capital Partners (Gaw), a real estate fund manager head-quartered in Hong Kong.

Gaw will retain Indochina Land to provide ongoing asset management services during a transitional period.

The assets sold to Gaw represent four of the 12 projects in which ILH2 originally invested. The four projects are Indochina Plaza Hanoi, Hyatt Regency Da Nang and two ongoing development projects in the central Quang Nam Province and in HCM City.

CEO of Indochina Capital Peter Ryder said in a press release, "In the real estate fund management business, exit strategies are as important as investment strategies. We are proud to have developed Indochina Plaza Ha Noi and Hyatt Regency Da Nang and other award-winning properties throughout Viet Nam.

Indochina Plaza Hanoi will be managed by Gaw Capital Partners. VNS Photo Cong Thanh

"As the term of ILH2, the real estate fund in which these properties are held, approached its termination date, we fulfilled our duty to our fund investors and exited successfully via a sale to Gaw Capital Partners."

Indochina Land's Chief Operating Officer Michael Piro said Indochina Land's team of seasoned professionals would support Gaw during a transitional period, and that the transfer of the properties would not affect the agreements and contracts entered into between the projects and the owners of condominiums and villas at Indochina Plaza Ha Noi and Hyatt Regency Da Nang.

Indochina Land remains positive about Viet Nam's property market because of the country's large population, favourable demographics, ongoing urbanisation and steady regulatory liberalisation process. While competition is fierce in the medium and lower segments, the high-end, where Indochina Land focuses, presents unique opportunities for developers who possess the ability to develop differentiated, luxury properties with value appreciating over time.

Peter Ryder said the company has always sought new challenges and would continue to identify opportunistic development projects with a focus on one-of-a-kind concepts, quality design and construction in excellent locations to create remarkable high-end properties for the long term.

As the Mergers and Acquisitions Investment Opportunities Conference reports, real estate tourism remains a favourite investment magnet in Da Nang, attracting 25 foreign direct investment (FDI) projects worth US$1.8 billion.

FDI projects in real estate tourism comprise 54 per cent of the total FDI capital in the city.