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VinaCapital invests $10m in CenLand

Update: April, 05/2018 - 05:13
Representatives of Vinacapital and CenLand sign the strategic shareholder agreement. — Photo ndh.vn
Viet Nam News

HÀ NỘI — Vietnam Opportunity Fund (VOF), the flagship fund of VinaCapital, on Tuesday announced it has made a private equity investment worth US$10 million in real estate brokerage firm CenLand.

The investment was made through Singapore’s Menzies Holding Pte. Ltd., with 12 per cent stake in CenLand. Through this deal, the value of the company is now over $83 million, while its charter capital is only VNĐ500 billion ($22 million).

Andy Ho, managing director of VOF, said on news website londonstockexchange.co that Việt Nam’s real estate market continues to grow, and yet the brokerage business remains relatively undeveloped. CenLand is already the top broker in the north, with the majority of its business in primary sales.

“We look forward to the company broadening its presence in the secondary market, where opportunities are expected to grow, and to fully develop and utilise digital sales channels,” Ho added.

Ho also noted that the terms of investment included downside protection and performance commitments typical of VOF private equity deals, as well as a commitment to list by the third quarter of 2018.

Founded in 2002, CenLand is one of the leading real estate brokerage companies in Việt Nam, with a sales network of more than 1,200 sales people, nearly two-dozen offices and 400 partners countrywide, according to VinaCapital’s report. 

Last year, CenLand reached revenue and after-tax profit of $48 million and $11 million, respectively.

In 2018, the firm expects revenue to rise by 24 per cent to $61 million, with 20-25 per cent growth in earnings. It targets to sell 16,000 units across 71 projects nationwide. — VNS


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