Gaw Capital Partners Acquires Vietnam Real Estate Portfolio



Capital Partners has acquired an existing portfolio of real estate projects in

Hanoi, Ho Chi Minh City and Danang


June 1, 2015 – Gaw Capital Partners,

the Hong Kong–based real estate private equity firm, announced that a

new fund it manages has bought an existing portfolio of real estate projects in

Vietnam from Indochina Land Holdings 2 Ltd.



portfolio was purchased for US$106 million and is comprised of four of the

remaining projects originally held under Indochina Land Holdings 2 Ltd. The

properties are located across the country including Indochina Plaza in Hanoi,

Hyatt Regency Danang and two additional land development projects in Danang and

Ho Chi Minh City.


The transaction was completed via a specially created

fund (GAW NP CAPITAL VIETNAM FUND 1, L.P.) for which Gaw Capital Partners

successfully raised to complete the purchase and to deploy additional equity for development projects. NP Capital,

based in Ho Chi Minh City, is the local joint venture partner in the fund. The

founder of NP Capital is the senior vice president of Tien Phuoc Group. Tien

Phuoc is highly regarded as a reputable real estate developer and investor in

Vietnam, and has successfully established strategic partnerships with Keppel Land

and Ascendas previously. Indochina Land, an affiliate of the seller, will be

retained by the fund for a transition period in order to facilitate some

project development and operation work.


This purchase marks a significant move by Gaw Capital

Partners to increase its presence in Vietnam. Gaw Capital Partners has invested

in a mixed-used development project, Empire City, in Ho Chi Minh through Gateway

Real Estate Fund III. However, this new transaction represents the debut of Gaw

Capital Partners’ fund management services in the Vietnam market.


“We are

delighted to have completed the acquisition of a portfolio of high quality

assets, and look forward to working with the capable and professional team at

Indochina during the transition period.” said Kenny Gaw, Managing Principal and

President at Gaw Capital Partners. “Not only do the properties within the

portfolio provide an attractive initial yield but it also shows our confidence

in the fast growing Vietnamese market. In

joining hands with an experienced local partner like NP Capital we are able to

bring their expertise and resources along with our creativity and vision to the



Christina Gaw, Managing Principal and Head of Capital

Markets at Gaw Capital Partners expresses her appreciation for all the support

from the limited partners in this new fund in order to complete the transaction

and their confidence in the firm’s ability to manage the fund.


Felix Lai, Investment Director of Gaw Capital

Partners, said, “This is a ground-breaking transaction that involves multiple

asset classes in different cities and an innovative capital structure – the

first time for the Vietnam market. We are grateful to have the close

cooperation and support of our investors, our local partner and the seller to

complete it successfully.”


Vo Sy

Nhan, Founder and CEO of NP Capital, said, “We are happy to partner with Gaw Capital

Partners and

together form Gaw NP

Capital. We are confident that it will set a new benchmark of developing and

managing property projects successfully in Vietnam and showcase our strong

synergy between global expertise with extensive local knowledge and market

know-how. Ultimately, this partnership will tap into tremendous real estate

opportunities through the vast network of NP Capital in Vietnam and leverage on

Gaw Capital’s experience and reputation in the private equity market. ”


The Vietnam market has been recovering rapidly

and riding on the wave of increased foreign direct investment and

industrialization, Vietnam has become the

largest exporter to the U.S. among ASEAN countries. With its

strategic location, young population and lower costs than China, Vietnam has attracted

many factories originally based in China to relocate.


As the world’s 13th largest country by

population, Vietnam has been identified by UBS in 2015 as “potentially one of

the most exciting markets in Asia”, due to its potential to become the largest

beneficiary of the Trans-Pacific Partnership (TPP) and the Regional

Comprehensive Economic Partnership (RCEP). Goldman Sachs has also

identified Vietnam as one of the “N-11economies”, the next 11 economies to grow

the fastest after the BRICs. Vietnam’s economy is set to be of a size

comparable to that of Singapore, Ireland and Norway in 2050. Recently,

Bloomberg also stated that Ho Chi Minh City is ranked 4th among the fastest

growing Cities in Asia during 2015-2019 according to Oxford Economics Report.