Updated  
May, 09 2011 09:56:18

Lifeless property market gets lift from M&A deals

HA NOI — The moribund Vietnamese property market may see a glimmer of light through an increasing number of mergers and acquisitions (M&A).

According to Savills Viet Nam real estate agency expert Troy Griffiths, there was a rapid need for cash among investors that boasted large land reserves but lacked capital to invest, resulting in a rising number of M&A deals.

AVM Viet Nam M&A research and consultancy director Dang Xuan Minh said that the rise in M&A deals in the real estate sector was due to rising property prices, and the considerable amounts of hot money that had flowed into the market.

M&A offered an effective tool to promote revenue growth and restructuring, meaning the only the most competent investors would carry out projects, Minh said.

He said that with large amounts of capital, foreign investment funds and enterprises and strong domestic private conglomerates would benefit from M&A deals.

Since the beginning of the 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 US$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.

To explore M&A options further, the Viet Nam Investment Review newspaper and AVM Viet Nam will host a M&A Viet Nam forum in HCM City on June 9.

A seminar on M&A strategy and an exhibition to promote businesses and investment opportunities will also be held at the event. — VNS

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