Novaland receives 250 million USD of foreign capital
No Va Real Estate Investment Group Joint Stock Company (Novaland), belonging to NovaGroup, has just received an investment of $250 million from an investment fund group led by Warburg Pincus.
Warburg Pincus, a large private equity fund with a focus on growth investing, has invested in Asian real estate businesses for over 15 years and is currently one of the most active funds in Asia. region with an investment of over 7.0 billion USD in more than 40 real estate businesses. The total amount of capital that Warburg Pincus has disbursed and committed to Vietnam is more than 1.5 billion USD since 2013 as well as participated in 2 big IPO deals, Vincom Retail and Techcombank.
This investment marks the beginning of the strategic relationship between Novaland and Warburg Pincus, affirming Novaland’s current strong position in the real estate sector. Novaland’s synchronous project implementation capacity, outstanding business results and large land bank will be further strengthened by Warburg Pincus’ experience and expertise in the global real estate market.
Mr. Bui Xuan Huy – Chairman of the Board of Directors of Novaland said: “Warburg Pincus is an important strategic partner for us. Warburg Pincus is one of the oldest and most successful private equity funds in the world, accompanying Novaland with large disbursements shows the strong belief they place in the growth potential of the company. Coporation, group. Warburg Pincus’ proven experience in supporting real estate businesses in Vietnam and Asia is of great value to Novaland, and we expect this relationship to bear fruit during this period. new development of the Group”.
With the investment from Warburg Pincus, this is Novaland’s next successful large-scale fundraising with international investors in less than a year since the issuance of the internationally listed convertible bonds. on the Singapore Stock Exchange in July 2021. These are also positive signals showing the confidence of international financial institutions in Novaland along with the focus on investment and development of urban real estate and urban tourism real estate in the mid-high-end segment. and is researching and implementing industrial real estate.
The USD 250 million raised will be allocated to increase the land bank and develop Novaland’s existing projects in strategic locations, taking advantage of the gradually improving infrastructure in the South.
Jeffrey Perlman – Managing Director, Head of Real Estate, Warburg Pincus, Asia Pacific shared: “This investment confirms our unwavering commitment to Vietnam. With a continuously improving urbanization rate, a growing middle class and an increasingly diversified economy, Vietnam is poised for strong growth in the coming years. We are excited for the opportunity to once again invest in a leading Vietnamese enterprise. With a strategic land bank, leading brands and outstanding execution capacity, we believe in Novaland’s ability to make the most of the market’s growth potential. At the same time, we will take advantage of our network, experience and expertise to accompany Novaland to develop more in the near future.”
This transaction marks Warburg Pincus’ sixth investment in Vietnam. Since 2013, Warburg Pincus has invested more than $1.5 billion in equity in some of Vietnam’s leading enterprises including: Vincom Retail (completely divested in 2019), BW Industrial Development, Lodgis Hospitality , Techcombank and MoMo.
Warburg Pincus said it strongly believes in the long-term growth trajectory of the Vietnamese economy and continues to actively pursue new opportunities to invest in leading platforms in Vietnam.
In addition, in this transaction, Credit Suisse acts as the sole financial advisor for Novaland.
Warburg Pincus LLC has more than $80 billion in total assets under management (AUM). The Group has an active and diversified portfolio of more than 245 companies across different stages of development, sectors and geographies.
Founded in 1966, Warburg Pincus has raised 21 private equity funds and 2 real estate funds, and invested more than $100 billion in more than 1,000 companies in over 40 countries. The company is headquartered in New York and has representative offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore. Warburg Pincus’ investment portfolio in the Asian real estate market includes: ESR, DNE, Princeton Digital Group…
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