CapitaLand in talks to buy Vietnam property assets worth $2 billion from Vinhomes: Sources - The Straits Times

SINGAPORE/HANOI – Singapore’s CapitaLand Group is in talks to acquire assets worth roughly US$1.5 billion (S$2 billion) from Vietnam’s biggest listed property firm Vinhomes, two sources familiar with the matter told Reuters.

A deal of that size would mark one of the largest real estate transactions in South-east Asia in the last few years.

The talks come as Vietnam’s property sector is struggling with a cash crunch following an anti-graft campaign launched by the government in 2022.

Discussions between CapitaLand, majority-owned by state investment company Temasek, and Vinhomes, which has a market value of US$8 billion, have taken place for some projects owned by Vinhomes, four sources told Reuters.

Vinhomes, Vietnam’s biggest real estate developer by market capitalisation, is part of Vingroup, the country’s largest conglomerate.

One of the sources said CapitaLand is considering buying part of Vinhomes’ Ocean Park 3 project, a 294ha resort-city-style development near the Vietnamese capital city of Hanoi, or another project in the northern city of Haiphong.

The value of the deal is still being negotiated, the person said, adding that the talks have reached the advanced stage.

The sources declined to be identified due to the sensitivity of the matter.

When contacted by Reuters, CapitaLand Development did not directly comment on any potential deal with Vinhomes but said: “Vietnam is one of CapitaLand Development’s core markets. We constantly evaluate investment opportunities to grow our presence in the country.”

CapitaLand Development, part of CapitaLand Group – which has a presence in 40 countries – develops retail, office and residential properties, as well as business parks and data centres, among other businesses. It already has a portfolio of residential projects, including luxury condominiums, in four cities in Vietnam.

Vingroup declined to comment on any discussions with CapitaLand Group but said that as a listed company, it will disclose information if any transactions happen.

Vingroup, which is involved in real estate, automobiles and retail, is investing billions of dollars to develop VinFast, its fledgling electric-vehicle maker.

Vinhomes develops and owns residential and commercial real estate projects in Vietnam, a country that has a population of 100 million and was Asia’s fastest-growing economy in 2022.

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