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Home / Investment / News
VOF to invest in real estate brokerage firm CenLand
Nguyen Tung 10:54, 2018/04/04
Vietnam Opportunity Fund (VOF), the flagship fund of VinaCapital, announced on April 3 that it has made a private equity investment worth US$10 million in real estate brokerage firm CenLand to obtain a significant minority stake.
"Vietnam'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," said Andy Ho, Managing Director of VOF.
 
Illustration photo.
Illustration photo.
"We look forward to the company broadening its presence in the secondary market, where opportunities are expected to grow, and to more fully develop and utilize digital sales channels."
Ho noted that the terms of investment include downside protections 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 top five real estate brokerage companies in Vietnam, with a sales network of more than 1,200 sales people, nearly two dozen offices and 400 partners countrywide, according to VinaCapital's report. 
In 2017, the company sold more than 11,500 units, thanks in part to its relationships with key Vietnamese developers such as Khang Dien House, Sovico, and Trung Thuy Group, to name a few. 
CenLand's revenue and after-tax profit in 2017 was US$48 million and US$11 million, respectively. In 2018, CenLand expects revenue to rise to US$61 million, a 24% rise over 2017, with 20-25% earnings growth, on the back of forecasted sales of more than 16,000 units in 71 projects throughout the country.
Launched in 2003, VinaCapital Vietnam Opportunity Fund Limited is a Guernsey-domiciled, closed-ended investment company. VOF's investment objective is to achieve medium to long-term returns through investment either in Vietnam or in companies with a substantial majority of their assets, operations, revenues or income in, or derived from, Vietnam.
VOF is managed by VinaCapital, an entity managed and regulated in Vietnam by the State Securities Commission of Vietnam, a member of the International Organization of Securities Commissions.
Since the beginning of the year, VOF has made multiple investments in businesses benefiting from strong domestic growth. Last month, it invested US$10 million in Ricons Construction Investment JSC, a subsidiary of the country's leading developer Cotec Construction Joint Stock Company (CotecCons). 
In February, VOF invested US$32.5 million to acquire a significant minority stake in Ba Huan JSC, the country's leading eggs and poultry meat producer.
VinaCapital's flagship fund earlier also invested approximately US$45 million into two subsidiaries of PetroVietnam - PV Power and Binh Son Refining and Petrochemical (BSR) - as part of their initial public offerings (IPOs) conducted in January.
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