Domestic enterprises make imprints on real estate M&A market

The domestic real estate market has bottomed out and is gradually making a U-turn, promising a brighter outlook this year with mergers and acquisitions (M&A) bouncing back.

Unlike 2023 when M&A activities were dominated by foreign firms, 2024 is witnessing a notable comeback of domestic enterprises, leaving a significant mark in the industry.

Restructuring efforts by domestic companies have created significant opportunities for strong investors to acquire potential projects.

Khang Dien House Trading and Investment JSC (KDH) has approved a plan for its subsidiary, Saphire Real Estate Trading Investment Co., Ltd, to acquire 99% of the charter capital worth 350 billion VND (13.75 million USD) of Loc Minh Real Estate Investment JSC, thereby owning a 1.9-hectare land plot in Ho Chi Minh City’s Thu Duc city.

Hai Phat Investment JSC (HPX) plans to spend over 434 billion VND to secure 99.8% of the charter capital of Ky Son Green Investment Development JSC, thus joining a 35-ha Dao Ngoc resort villa project in the northern province of Hoa Binh.

Ha Do Group JSC (HDG) has a plan to carry out many M&A deals in order to collect land for urban area projects in the northern provinces of Hung Yen, Thai Binh, Nam Dinh, and Quang Ninh, aiming to expand its multi-sector operations.

Meanwhile, Nam Long Investment Corporation (NLG) highlights M&A as one of its key strategies for this year to lure partners to its projects.

The market has also witnessed a series of cooperation projects between domestic firms and foreign investors through M&A deals.

Notably, Gamuda Land acquired a 3.68-ha project from Tam Luc Real Estate Corporation in HCM City, while Sky World Development Berhad spent 14.3 million USD on purchasing a land plot from Thuan Thanh JSC. CapitaLand acquired an 18.9-ha urban area project in the southern province of Binh Duong from Becamex IDC, and a 4,000-apartment project in Hanoi.

Kim Oanh Group inked a cooperation agreement with Surbana Jurong of Singapore, while Hung Thinh partnered with Marubeni Group of Japan to implement a new administrative centre project in HCM City. First Real Land acquired a 22% stake of Bach Dang Trading and Services JSC’s charter capital to own a land plot worth 8.2 million USD in the central city of Da Nang.

According to Trang Bui, General Director of Cushman & Wakefield, new regulations help resolve obstacles for real estate projects, making it easier for enterprises to expand their markets and set up partnerships.

The domestic real estate market is expected to welcome a big foreign investment influx in 2024 - 2026, especially projects with legitimate ownership rights and substantial development potential, she said, noting that many transactions are currently in positive negotiation stages.

Sharing Trang’s opinion, Senior Director, Advisory Services at Savills Vietnam Do Thu Hang predicted that M&A activities are likely to thrive this year, even 2025./.