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Vincom Center A was handed over to customers

29 Apr
VNRE – After three months of sales, the commercial center (retail floor) at Vincom Center A was filled to 70% of area for fashion, jewelry, high-end accessories; 60% of area for restaurants, cafes, fast food; 70% of area for electrical equipment… Until now, Vincom Center A has completely finished raw building and is installing 70% of electromechanical system, the handover to tenants to finishing interior from April 1, 2012. The project was scheduled to open on October 10, 2012.

Besides the commercial center, Vincom Center A includes 5-star hotel named Vinpearl Luxury with nearly 300 rooms, is located from L5 to L8 floor of the building, 3 floors of underground parking (25,000 sqm) with a capacity of about 1,000 cars/10.000 motorcycles.

Source: VinGroup

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

Vingroup: Vivid Impression in Vietnam Market

1 Dec
VNRE – Vingroup officially joined the World Economic Forum (WEF) and became a member of the Global Growth Companies (GGC). This giant step is an assertion of the passionately pioneering position and competency of a leading real estate company in Vietnam. Vietnam Business Forum interviewed Mr Le Khac Hiep, Vice President of Vietnam Investment Group JSC (Vingroup), on the group’s operations and development orientations. Thanh Binh reports.

Mr Le Khac Hiep – General Director of VinGroup
Could you briefly introduce Vingroup, after 19 years of development?
Vingroup, which was initially called Technocom, was set up on August 8, 1993 in Kharkov City, Ukraine. The founders were very young, active and enthusiastic Vietnamese students. With in-depth market surveys, research and knowledge, the company installed the two first production lines and employed 35 workers in 1995 to produce Mivina-branded noodles. After three years, from 1995 to 1998, the company’s production output reached 1 million packages. The company was branded a trailblazer of the Ukrainian fast food market. 
Despite fierce competition from Ukrainian and international corporations, Mivina brand noodles held 98 percent of the instant noodle market, over 95 percent of the instant potato market and over 50 percent of the spice market in Ukraine in 2009. The company also exported its products to 30 countries in the world, raking in nearly US$150 million a year on average revenue. The Group’s assets in Ukraine are estimated at hundreds of millions of US dollars, its name is known to more than 95 percent of population, and its products are consumed by more than 75 percent of population.
With its tremendous success and huge contributions to the Vietnamese community in Kharkov in particular and in Ukraine in general, Vingroup has been honoured with more than 200 national, international medals and awards, including Nikolai Medal, Choice of the Year Award, Excellent Quality Award, European Quality Award, etc.
After making great success in Ukraine, with living hearts that beat in rhythm with the homeland, Vingroup leadership decided to invest in big projects in Vietnam since 2000, with two first brand names – property company, Vincom, and tourism company, Vinpearl. Vincom-trademarked construction projects like Vincom Center Hanoi and Vincom Center Ho Chi Minh City or big projects undertaken by Vincom like Royal City, Times City and specially Vincom Village always catch the interest of domestic and foreign investors and have strong impacts on the Vietnamese real estate market. Together with that, Vinpearl Joint Stock Company has become a leading name in the hotel and tourism industry with the Vinpearl Nha Trang amusement complex, Vinpearl Resort Nha Trang, Vinpearl Land, Vinpearl Luxury Nha Trang hotels and island Vinpearl Golf Club course. The Vinpearl hotel system has been expanded to other places of interest like Vinpearl Luxury Da Nang, Vinpearl Resort Hoi An, and Vinpearl Luxury Saigon.
With strong and sustainable development, listed on the Ho Chi Minh City Stock Exchange, Vincom Joint Stock Company (VIC) and Vinpearl Joint Stock Company (VPL) are always among the Top 10 stocks in market capitalisation. At present, Vincom has a charter capital of over VND3,900 billion and a market capitalisation value of VND35,000 billion, and Vinpearl has a charter capital of VND2,000 billion and a market capitalisation value of VND16,000 billion. After the two merge, Vingroup will one of the largest listed real estate companies in Vietnam.
What makes Vingroup a successful brand?
The success of Vingroup is accrued from many factors. The first and most important is to know how to seize opportunity and realise it. In Ukraine, when Vingroup was established, this country was experiencing a very tough time as a result of a transition from a centrally planned economy to a market economy. Inflation galloped, factories closed, and unemployment escalated. This transitional period offers a plenty of opportunities for future growth and the group’s founders successfully grasped them. When the Group began its investment in Vietnam in 2000, the Vietnamese economy had been shaken by the Asian financial crisis and started recovery. At that time, the real estate market was still an “open door” and the opportunity once again knocked for Vingroup.
But, I must note that, to make investment and business plans successful and have our current development, we must have the categorical dedication of the entire group.
The final factor to our success that we cannot forget is the support and cooperation of central and local authorities in Ukraine and Vietnam. To obtain this support, since its incorporation, Vingroup has defined that it will become a healthily developing enterprise and contribute to social development activities, as well as promote corporate social responsibility.
Recently, Vingroup was officially admitted to WEF and GGC. How does this mean to Vingroup in particular and Vietnamese brands in general?
On July 1, 2011, Vingroup officially joined the World Economic Forum (WEF) and became a member of Global Growth Companies (GGC).
For Vingroup, becoming one of 300 leading international corporations in the prestigious WEF community is a giant step that asserts its passionately pioneering position and competency as a leading real estate company in Vietnam. This may be called a certification for Vingroup’s position on the international arena and a passport for Vingroup to reach the open sea.
Without doubt, WEF is the most prestigious global economic forum that brings together leaders of developed economies, corporations and top-notch scholars all over the world. Becoming a part of WEF, Vingroup is entitled to join and address regional and global issues. More specifically, we have the opportunity to access sources of information on volatility forecasts or economic, social and political development in each country and the region to define development demand opportunities and cooperate with big international partners in pursuit of mutual cooperation and development.
Playing on the ‘global arena’ means facing more challenges. Does Vingroup have the appropriate tactics to assert its position on the international arena? Would you be kind enough to share the central objectives of Vingroup’s development strategy for the coming time?
That’s right. Playing on the global arena requires us to have innovative policies and strategies. Thus, Vingroup is merging Vinpearl Joint Stock Company in to Vincom Joint Stock Company. The amalgamation of two leading brands, Vincom with the real estate business and Vinpearl with tourism, resort and entertainment services, will surely create a new resilience for the market and continue substantiating and enhancing the global profile of Vingroup.
Vingroup will become a property and tourism group with a charter capital of nearly VND5,500 billion and the largest market capitalisation in the Vietnamese stock market.
Presently, Vingroup is developing four strategic brand groups: Vincom (real estate), Vinpearl (tourism and entertainment), Vincharm (beauty and health care) and Vinmec (high-grade medical services). In addition, internationalising service quality is also an important objective Vingroup is pursuing in order to provide perfect products and services to compete with international groups.
Source: VCCI News

Vinpearl to invest $5 billion to build Van Village resort

20 Oct
VNREAfternoon 10/19, the Danang People’s Committee and Vinpearl Joint Stock Company signed agreement on the investment principles of Van Village resort project at the headquarters of Danang PC.

Accordingly, the Danang People’s Committee agreed to assign Vinpearl as investor of Van Village project with total land area and water area is more than 1.500ha (1.050ha of land and 500 ha of water). The Danang People’s Committee will be responsible for site clearance all the land.

An leader of Vinpearl Corporation, said Van Village resort has a total investment estimated $5 billion, of which the first period has total investment $1 billion.

As planned, the project will include such items as: a complex of 5-star hotels with more than 1000 rooms; a population of luxury villas and highclass apartments, a commercial center system of retail stores, restaurants, bars, beauty care centers; theaters and international conference center…

In addition, there will be a big sport center and water sports, telpher, marina, helicopter parking, seaplane…

Van Village resort is a large-scale project in the masterplan for development of Da Nang City and was placed in the category of key projects, so Chairman of Danang PC Mr. Van Huu Chien has directed the departments and local authorities to create conditions for Vinpearl to deploy the project as quickly as possible on the basis of the regulations .

Van Village resort is located in Van Hoa hamlet, Bac Hoa Hiep ward, Lien Chieu district. It is a peninsula located at the foot of the Hai Van Pass with smooth sand, blue sea and romantic landscape…

Photo courtesy of NTNguyen
Masterplan designed by WATG

Vinpearl and Vincom seal merger

5 Oct
VNREVinpearl Joint Stock Company will merge with Vincom Joint Stock Company to form the new Vingroup.

According to the press release, both companies’ Boards of Directors met on October 4 and approved the merger in a bid to enhance competitiveness and expand their businesses by combining resources of two of the leading companies in Vietnam.
After the merger is completed, Vinpearl shares (VPL) will be listed under the Vincom’s VIC symbol.
The merger will create a stronger corporation to rival foreign competitors in real estate development and the resort business, said Le Khac Hiep, Vice Chairman of Vingroup and Chairman of Vincom’s Board of Directors.
Hiep added the new Vingroup will focus on developing its four specialised brands: Vincom (real estate development), Vinpearl (travel and entertainment services), Vincharm (beauty care) and Vinmec (high quality medical services).
Vincom, with a chartered capital of over VND3.9 trillion (US$187.2 million), is the owner of numerous real properties including Vincom Center Hanoi and Vincom Center Ho Chi Minh City, as well as Vincom Village, Times City and Royal City in Hanoi.
Vinpearl has a chartered capital of VND 2 trillion (US$96 million) and is a leading chain of luxury resorts and hotels in Vietnam.

Source: Nhan Dan

Vinpearl to open Vinpearl Luxury Danang Resort in July

11 Jun

VNRE – Built on one of the most beautiful beach of the planet, where reconciliation between the imposing mountain and endless blue sea, the 5+ star hotel named Vinpearl Luxury Da Nang is ideal paradise resort for customers. After more than a year of construction and finishing, on 07/03/2011, Vinpearl Corporation will officially open and welcome guests to this beautiful resort.

Occasion of the opening, Vinpearl Luxury Da Nang offers “Special opening offer” promotion to all customers booking request to 07/31/2011 for the period from 07/04/2011 to 11/30/2011. Customers will get special treatments: free transport charges from airport to hotel, free fruit basket in room on check-in day, free breakfast everyday for 02 people, 20% reduction on the bill for spa services and dining, free shuttle bus to Hoi An or Bana Hills.

Located in the most favorable position of Non Nuoc beach, one of six most beautiful beaches on the planet (according to Forbes magazine’s poll), with view towards the sea and its back leans against the Marble Mountains range, Vinpearl Luxury Danang becomes extremely ideal destination for the perfect holiday. From here, you can easily visit the world cultural heritage sites has been recognized by UNESCO as My Son, Hoi An and Hue Citadel.

From Da Nang International Airport, customers only take about 15 minutes by car to Vinpearl Luxury Danang Resort.

The hotel consists of 200 luxury rooms class 5 + stars were designed in contemporary architectural style. Interior decoration in hotel rooms are well-designed, luxurious and makes you feel like being in the middle of a paradise resort. In particular, all rooms in this resort are overlooking the sea and main pool. In addition, all customer care services of Vinpearl Luxury Danang: transport from the airport, health care and beauty, entertainment, cuisine… are served in accordance with the criterias: luxury and privacy, unique and highclass, comfort and warm.

Vinpearl Luxury Danang – Paradise resort in the dream.

For detailed information, please contact:

Reservation department of Vinpearl Luxury Danang
Hanoi: Tel: 84.4.3974 9966 – Fax: 84.4.3974 8833
Danang: 84.511.396 8888 – Fax: 84.511.396 8188

Vincom markets mammoth property project in Hanoi

27 May
VNRESai Dong Urban Development and Investment JSC, an affiliate of Vincom Corporation, on Tuesday started marketing its Vincom Village multipurpose project underway in Long Bien District in the capital city of Hanoi.

The developer says some VND10,000 billion, or nearly US$500 million, will be set aside to develop the project on 183,5 hectares including 60 hectares of water surface east of Hanoi, some 6.5 km from Ho Guom (Sword Lake).

The project is envisioned including a 38-hectare section for French-style villas, a section for Grade A office buildings and high-end apartments, and a commercial services section named Vincom Center Long Bien.

Besides a sport center and an outdoor food court, an international hospital, two schools and a kindergarten will be built to serve the project’s future communities.

Mai Huong Noi, general director of Vincom Corporation, says the company wants to set a record in the project development speed. The project got off the ground on May 12 this year.

As planned, villas will be handed over to buyers from September and the shopping center, Vincom Center Long Bien, will be opened by December 24 this year. The second phase with the remaining facilities will be finished by 2013.

In related residential market news in the region, the property services provider Savills Vietnam said that prices of villas and townhouses in the capital city continued to increase in the first quarter of this year, 20% for villas and 15% for townhouses.

Average secondary asking prices recorded in Tu Liem, Cau Giay and Tay Ho districts were around US$6,400 per square meter. For districts far from the central business quarter such as Me Linh and Quoc Oai had the lowest price from US$800 to US$1,200 per square meter.

According Savills, 103 projects across 14 districts provide the market some 34,600 villas and townhouses. The demand for the properties is identified among mainly wealthy Vietnamese.

In the office building sector, the overall market recorded a slight increase in occupancy performance to 90% in the first quarter of this year. Average rent remained unchanged compared with the previous quarter, at US$26 per square meter.

The office market in Hanoi currently has 760,000 square meters, but there will have some 1.2 million square meters of office space to enter the market in the next three years.

Meanwhile the retail market saw a slight decrease in the average occupancy rate to 92% in the first quarter. Some retail buildings launched promotions and discounts in order to attract more tenants.

The market observer says the total retail space of 440,000 square meters in the market will be increased significantly as 100 projects will supply some 1.2 million square meters in the next four years.

Reported by Dinh Dung | The Saigon Times