Archive | March, 2012

Vincom raises USD185 million in CB offering

29 Mar
VNRE – Vincom Joint Stock Company, Vietnam’s largest real estate company, has returned to the international convertible bond market less than three years after its landmark debut convertible bond (CB) in 2009, raising US$185 million.

This is Vincom’s second convertible bond issue since its US$100 million debut CB offering in November 2009, which was also the first ever offshore CB issued by a Vietnamese corporate.
The latest transaction was launched with a base issue size of US$150 million with an upsize option of US$100 million, part of which was exercised at the time of pricing. The remaining US$65 million upsize can be exercisable within 30 days after the deal’s closing date on April 2012.
The US dollar-denominated bonds carry a coupon of 5 percent and are convertible into the ordinary shares of Vincom at a conversion price of 112,200 dong (USD5.4), which represents a premium of 10 percent over the stock close of 102,000 dong on March 28.
The CB, which matures in 2017, comes with an investor put option at year two, giving investors a choice to sell the bonds back to the issuer in April 2014. The transaction features annual conversion price reset on October 3 each year until 2016. The conversion price cannot be adjusted to less than 80% of the initial conversion price.
The company plans to use the net proceeds to finance investment in property developments, working capital and general corporate purposes.
The CB provides the company with long-term financing at attractive terms and diversifies its sources of funding, the company noted in a statement.
“We are encouraged by the strong interest for [the transaction], which emphasises the attractiveness of Vincom and Vietnam’s real estate sector,” Mai Huong Noi, Vincom’s general director said in the statement. “The interest rate of 5 percent is attractive for such unsecured CBs. Vincom has been a leader for Vietnamese companies to access international markets, and we hope this transaction will enable other companies to follow suit.”
The company held site visits in early March in Hanoi for potential investors and went to roadshows in Hong Kong and Singapore where it met over 30 investors in one-on-one and group meetings before pricing the transaction on March 28. 
Credit Suisse, which was the sole bookrunner for the Vincom’s debut CB offering, was again the sole bookrunner in the current transaction. The bonds will be listed on the Singapore Exchange.
Vincom, with a market capitalization of approximately US2.56 billion, is the largest listed real estate company in Veitnam by market cap. The company develops, leases out and sells retail, office, residential, resort and mixed-use properties in major cities in Vietnam.
Reported by Gita Dhungana | The Asset

Sovico Shopping Center

29 Mar
VNRE Address: Quang Trung Street, Hai Ba Trung District, Hanoi
– Category: Resident and Commercial Centre Building
– Scale of project (GFA): 41,597.1m2 (excluding basement)
– Architecture Design: HighEnd Architecture

Source: HighEnd Architecture

Dalat Novotel Hotel

29 Mar
VNRE Address: Anh Sang Park, Ward 1, DaLat City.
– Category: 4-star hotel
– Scale of project (GFA): 16.141 m2; 170 rooms
– Architecture Design: HighEnd Architecture

Source: HighEnd Architecture

Taking a Bath in Vietnam Real Estate

29 Mar
VNRE – Ho Chi Minh City got a 68-story skyscraper, Vietnam’s tallest, when the downtown Bitexco Financial Tower was inaugurated in 2010. The building, boasting a helipad at the 50th floor, can be seen from almost every part of the city.

It hasn’t been a celebration for the owner, however. Nearly 18 months later half of the building’s office space is still empty and none of the six retail podiums is open. Annualized interest rates reached as high as 23% late last year, and there are plenty of rumors that the owner is trying to sell the building to pay off construction loans. But the company dismisses them. “Bitexco Financial Tower is our pride; we are not selling it,” says Vu Quang Hoi, chairman of Bitexco, a private Vietnamese company that’s invested in more than a dozen other real estate projects, plus infrastructure, energy and mining. “This is a difficult time for businesses, but it is precisely why we need to continue to invest more.”
Not everyone has the same spirit. There are 20 socalled golden sites in the city–prime spots slated for development–but only two projects have been completed and two are under construction; 16 sites are still vacant. Rent for grade-A office space has dropped nearly 50% since 2009. High inflation, high interest rates and the dong’s devaluation have created what CB Richard Ellis Vietnam calls in a January report “a residential nightmare” as property developers boosted their marketing budgets threefold but can sell less than one-third of what they build. Some of the top companies, both private and state-owned enterprises, are also the biggest debtors, and while none of them has declared bankruptcy, it is tough for them to continue investing with the cost of capital so high. There is a saying in Vietnam these days: “It is time to pick up dead bodies on the market.”
But where are the dead bodies? Another joke goes: “There are no distressed assets in Vietnam.” Vietnamese tycoons keep their dire financial situation private, doing deals quietly as people with cash snap up unfinished office buildings, apartment complexes and other projects at rock-bottom prices. For now, though, most such assets are being taken over by banks. Don Lam, chief executive of VinaCapital, a fundmanagement company, says it is working with at least one major bank, going through the list of bad debtors in real estate to revive unfinished projects. If it works, the model, called a “club deal,” will allow new investors to take on the old debt, on the condition that interest rates be fixed for two years.
With more companies struggling, merger and acquisition activity sprouted last year, and more deals are on the way in 2012. The Vietnam Stock Index, which dropped 29% in 2011, is up 31% so far this year, driven by takeover activity.
Meanwhile, the State Bank of Vietnam is forcing more than ten commercial banks to restructure because of liquidity problems caused by a large number of non – performing loans. Dang Van Thanh, the founder of Saigon Commercial Bank, who in 2010 was among the country’s richest people in terms of public shareholdings, is losing control of the bank.
Another high-stakes player, Pham Nhat Vuong, chairman of Vingroup, finds himself sitting on the tiger’s back. His group of companies is investing in at least four major property development projects across the country. But in December it reported a cash flow of only $220 million, which analysts say is not enough to cover liabilities of $1 billion. His Vincom division has had to sell two office towers in Hanoi and Ho Chi Minh City. Now it is hoping to raise between $150 million and $300 million overseas, most likely in Singapore.
Others are seizing oppor – tunities. Masan Group, which has interests in banking, mining and consumer goods, is on a quest to expand. With more than $600 million in cash on hand, it last year acquired 51% of Vinacafe, a maker of instant coffee and other consumer products.
Reported by Lan Anh Nguyen
Photo: Hoang Dinh Nam / AFP / Getty Images
Source: Forbes

StarCity Nha Trang – An original choice satisfying dreams

28 Mar
VNRE Condotel model (hotel renting management) began in South Florida in the 80s and now expands all over the world and valuated as “hottest trend” on real estate market. Condotel is tourism real estate model or the ‘second home’ for high class relaxing demand. To own the Condotel is the choice of not only noble but also successful people.

Owning the most beautiful location in Nha Trang at the centre of Tran phu street and opposite to the sea, StarCity Nha Trang is a special gift for sea lovers who want to dip their lives into fresh nature. From the hotel, the condotel owners could easily access to famous spot such as Ponagar temple, Yanbay cascade, Long Son pagoda…

StarCity Nha Trang is a 21 storey – 4 star hotel built on area of 2.454 m2 with 217 hotel rooms and 92 condotel flats. The 2 foundation floors shall be service area of shopping, bar/restaurants, swimming pool, healthcare and spa, etc. Hotel rooms for tourists are arranged from 3th to 15th floor and condotel apartments are on 16th to 21th floors.

Condotel flat has moderate area from 33 to 99 m2, suitable with the invesment budget of the customer.



StarCity Nha Trang hotel is a fully serviced combination with conveniences and public services such as swimming pools for adults and children, conference room, bar/restaurant, spa and healthcare, bank, ect. Living in the condotel room, the owners escape from the city dust and noise to set free their spirit to the sea and also make profit from their assets by renting the condotel rooms during the time they do not use.

Development team

– Investor: Ocean Hospitality Hotel Development and Management, member of Ocean Group
– Architectural Design: 5G Studio Collabarative – USA
– Structural Design: Vietnam National Construction Consultants Corporation – VNCC
– M&E Design: Vietnam National Construction Consultants Corporation – VNCC
– Quality Management: Song Da Investment & Construction JSC
– Interior Design: 5G Studio Collabarative – USA
– Landscape Design: 5G Studio Collabarative – USA
– Contractor: Cotec Construction Joint Stock Company – CotecCons

The project was started construction on 23/03/2012, basement pakage is expected to be completed within five months of construction.

For further information, please contact:

Ocean Hospitality Hotel Development and Management
Add: No 4 Lang Ha, Thanh Cong Ward, Ba Dinh District, Hanoi
Tel: 84.4.3772 7252 – Fax: 84.4.3772 7073

Real Estate Market: Challenging Investor Confidence

27 Mar
VNRE – The freezing market has sent down real estate prices in Vietnam but investors do not feel the right time to invest in. According to Mr Stephen Wyatt, General Director of Knight Frank Vietnam, a property consulting company, investors never buy a product when the market is on the peak of a cycle. So, will real estate prices continue to fall more?

Heavy financial pressures
It is obvious that development potentials of the Vietnamese real estate market remain huge. Oddly enough, although the demand is very high, dozens of thousands of apartments are unsellable. This is because owners do not want to sell on expectation of higher prices while buyers want to wait for lower prices.
Indeed, this is possibly the best opportunity for long-waiting foreign investors to invest in. Currently, many foreign investors are ready to take over property projects invested by Vietnamese companies. At present, pressures are placed on the shoulder of domestic investors as they have to seek capital to ease financial strains.
Although prices have fallen to the lowest level in the past two years, it is hard to find a meeting point of buyers and sellers. The supply of well-located and affordable projects is thin, and vice versa.
Under this circumstance, both domestic and foreign investors prefer standing on the sideline and waiting for better policies. And, patience is seemingly rewarding when the State Bank of Vietnam (SBV) announced to cut ceiling deposit rates by 100 percentage points, laying the ground for the cut in lending rates. This is also the basis for many property experts to believe that the real estate market will recover towards the end of this year.
Medium and long-term opportunities
Remarking on the medium and long-term real estate market, Mr Stephen Wyatt said opportunities for investors are optimistically open. “We are seeing strong demand for many of the investments, land and developments sites that we are currently selling. With renewed optimism and a return of confidence, 2012 is the time to start looking at investing in Vietnam”.
The Vietnamese real estate market essentially enhances transparency and market laws to mitigate risks for domestic investors. The lack of transparency will lead to hearsay-based investment decisions.
Real estate companies, particularly small and medium ones, lack administrative systems, especially risk management. The lack of operating professionalism is a reason why they difficultly access capital sources and do not have the trust of customers. Thus, according to experts, real estate companies necessarily restructure to have healthy market development.
Mr Nguyen Huu Cuong, Chairman of Hanoi Real Estate Club, said: The property market will soon recover if the stock market gains stable growth and investor confidence as it is now.
He said the stock market and the property market always have close interactive relations. Positive development of the stock market will be clearly translated into the revitalisation of the real estate market. Thus, if the current growth of the stock market is maintained and continued, capital flows from this market will surely run into the property market.
However, it is extremely hard to identify what factors will determine the recovery of the real estate market. Real estate investing is typically driven by herd sentiment in Vietnam. Investors will jump into the market if they feel it is good enough but they will rush to exit if they lack confident. Hence, according to experts, the instability of the market is not over.
Reported by Luong Tuan | VCCI News

Saigon at Seven AM

24 Mar
VNRE When the morning dew still covered, the Saigonese has been starting their work on construction sites, on the cargo ships at the Sai Gon port… We were in Thu Thiem – the east bank of the Saigon River to take these photos at 7am.

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West Kowloon Terminus by Aedas nominated Best Futura Mega Project at MIPIM Awards

23 Mar
VNRE – One of Aedas’ flagship projects, the Express Rail Link West Kowloon Terminus, was crowned Best Futura Mega Project at the MIPIM Awards 2012. The results were announced at the close of this year’s MIPIM, which was attended by some 19,000 of the world’s real estate professionals.

Designed by Andrew Bromberg of Aedas, in a joint venture collaboration with AECOM, the high-speed rail terminus station will connect Hong Kong to Beijing with the largest rail network in our history as it completes construction in 2015. Located in central Hong Kong, the 430,000 sq m facility will be the largest subterranean rail terminus in the world.
Aside from being one of Asia’s largest transportation hubs, West Kowloon Terminus will also offer a mix of civic and commercial uses.
As a major gateway to Hong Kong, the Terminus was designed to evoke a sense of occasion among arriving and departing passengers. This is reinforced with an expansive concourse offering a vast façade with views of the harbour, the Hong Kong skyline, Victoria Peak and beyond.
Each year, the MIPIM awards consider the most innovative, ambitious and exciting real estate projects from around the world. This year’s awards featured entries from a number of prestigious projects competing in the following eight categories: Best Industrial and Logistics Development, Best Refurbished Building, Best Shopping Centre and Best Futura Mega Project. Entries were judged by a panel of industry experts and were voted for by MIPIM participants.

Source: e-architect | Photos courtesy of Design Stories Social Network

Sharing Vietnam: The Israelis brings Timeshare to Vietnam

22 Mar
VNRE He is a smart Israelis, an expert with 25 years experience in Timeshare, a resilient leader. Besides he is a very funny person, a cool boss, a “Mr. Pinky “of Manna. But that’s not all comment about Oded Blumenfeld, vice president of Manna Luxury Holidays, the first company develops professionally in Timeshare in Vietnam.

Vacation ownership (timeshare) – understand is a form of ownership or right to use of a property in the luxury resort project within a specified time each year, in a certain number of years or permanently, starting to Vietnam 1-2 years ago. But until now timeshare is still new with Vietnamese, even among the “rich” people. Timeshare brings about great holiday for millions of families around the world, it’s time that opportunity comes to Vietnamese families.

“Sharing Vietnam” this week will talk to Oded Blumenfeld who is working hard to brings Timeshare become more closely with Vietnamese…

Source: Sharing Vietnam Talkshow | VTC Digital Television

Manna Luxury Holidays Resort – Your own personal paradise

22 Mar
VNRE Manna is Vietnam’s newest and largest all-encompassing five star resort, incorporating a variety of settings, landscapes, and accommodation styles to providing a multi faceted holiday experience for the whole family.

Be welcomed at Manna’s luxurious lobby, with views over our lush, landscaped grounds and vast expanses of swimming pools that extend down to the sea.

Manna has set a new standard in stylish vacation living. Modern European elegance is blended seamlessly with contemporary Vietnamese architecture and minimalist interior design and all the modern conveniences you’d expect from a five-start resort.


Set within 12 acres of pristine countryside overlooking the turquoise blue waters of Cam Ranh Bay, Manna will be Vietnam’s most luxurious family resort and the perfect place for the vacation of a lifetime.

From soaking up the sun on unspoiled beaches to water sports, golf, and tennis; from nightly performances to international fine dining and a five star spa, Manna has something for everyone. And with something new to experience every day, why wait?


Located in Cam Ranh overlooking the Southeast Asian Sea, Manna invites you to indulge in your perfect getaway in a sun drenched paradise fringed by rolling sand dunes, virgin forests and sandy beaches lapped by ocean waves.

Unit types

– Type A: 52,5 sqm + balcony 14 sqm. Occupancy 5 guests

– Type B: 75 sqm + balcony 21 sqm. Occupancy 7 guests

– Type C: 102 sqm + balcony 46 sqm. Occupancy 8 guests

– Type D: 102 sqm + balcony 46 sqm. Occupancy 8 guests


Resort activity

– Manna has direct access to an unspoiled sandy swathe of private beach. Relax under a parasol, or get active with volleyball, jet skis, water skiing and a wealth of water sports.

– At Manna, enjoy a variety of entertainment to suit your mood, from intimate dining experiences to movies, live performances, bars and discotheques.

– At Manna, you can choose from a wide range of recreational activities and excursions each day. From windsurfing, sailing and golfing to children’s adventure playgrounds, Manna offers the ultimate in excitement and exhilaration for your family.

– Sometimes you just want to kick back and relax. Pamper yourself with our full range of massage and salon services, or visit our world-class gym, spinning room, sauna or Jacuzzi.

– At Manna, family comes first, and we have a wide range of activities for you and your loved ones to enjoy together.

– Manna is the perfect setting for spending quality time with the one you love.


– Enjoy your holiday with family at Manna Resort during your week(s) in luxury suite or villa.
– Your family holiday is annually booked in advance and secured at the highest level.
– Only Timeshare owners have a vacation at the highest standard and lowest price.
– Timeshare owners in Manna resort can exchange their week with 4500 resorts worldwide.
– Good investment with return in short-time.


The Rafaeli Group incorporates many companies, one of which is a real estate company specializing in the development and management of commercial and residential projects.

Rafaeli is currently developing a residential complex of 3500 family units on a 430,000-square-metre plot of land in Israel, a project that exemplifies the synergy of contemporary style, cutting-edge design, modern facilities and a sense of community.

Rafaeli also has holdings and projects in Kiev, Ukraine; Athens, Greece; and Budapest Hungary.

Rafaeli’s best-in-class management group has successfully developed and marketed three extensive time share projects to date.


– Architects: MYS Architects
– Designer: Buki Zuker Designers & Architects
– Legal council: Bizlink Lawyers & Consultants
– The Exchange network: RCI
– Auditors and Tax Council: Ernst & Young
– Advertising company: GREY Group
– The Trustees: Hutchinson & Co Trust Company Limited
– Construction Consultants: ABBO Investment Consultancy & Engineering JSC.

The groundbreaking ceremony of the project was held on March 21, 2012. Expected to be completed in 2014.

For further information, please contact:

Rafaeli Group (Vietnam)
Hanoi: Viet Hai Building, Duy Tan Street, Dich Vong Hau Ward, Cau Giay District.
Tel: 84.4. 6253 5555 – Fax: 84.4.6251 8555

HCMC: G6 & G7, 2, 364 Cong Hoa Street, Ward 13, Tan Binh District.
Tel: 84.8.6253 5555 – Fax: 84.8.6297 1170