Hong Kong and Japanese PE asset management companies invest in Vietnam development
Total fund US$100 million; also looking at JV with major Japanese developers.
EXS Capital Limited, a Hong Kong-based independent private equity investment firm, has partnered with Singapore-based Japanese private equity investment fund manager ACA Investments to invest in a fundraising round for Vietnamese real estate developer SonKim Land Corporation that is expected to total US$100 million. The first round closing of US$46 million, subscribed as Redeemable Convertible Loans, attracted investment from Japanese high net worth individuals and other such clients of EXS and ACA. The remaining US$540 million is expected to be raised from investors during 2017. The funds will be used for luxury residential developments and other projects.
EXS specializes in investing in real estate companies in Asia. Structuring investment funds on a deal-by-deal basis, they pursue a value-driven, contrarian approach. This is their second investment with SonKim Land, following a US$37 million dollar investment in 2013. Although the stock market in Vietnam has languished since 2012, GDP has continued to grow. EXS was attracted to the divergence between Vietnam’s capital markets and its real economy. Eric Solberg, CEO of EXS, rates SonKim Land highly, noting, “They have an excellent management team and structure, able to meet strict international standards of due diligence, and are engaged in a number of attractive development projects.”
ACA was established in 2008 as a spin out division from Nikko ant factory K.K. (Currently Ant Capital Partners). ACA is just under 40% owned by Sumitomo Corporation, and has around 90 billion in private equity AUM targeted as ‘capital to link Asia’. The investment in SonKim Land is its 5th investment in Vietnam. The fund structured for this investment has investors that include Japanese HNW individuals. ACA has introduced major Japanese real estate companies to SonKim Land, and discussions are in progress with regard to a JV that, if agreement is reached, could receive capital from the funding round.
May 25, 2017
Real Estate Fund Review