Warburg Pincus invests $250 million in Vietnamese property


A consortium led by Warburg Pincus has made a US$250 million investment in Novaland Investment Group JSC (Novaland), a member of NovaGroup, the Vietnamese real estate developer with an established balance sheet of approximately US$10 billion in gross development value sold since 2009.

Novaworld Ho Tram real estate project in Ba Ria-Vung Tau province. Photo: Novaland

Proceeds from the $250 million financing of this transaction will be used to acquire land reserves and develop ongoing projects in strategic locations, building on upcoming infrastructure in the southern part of Vietnam.

Bui Xuan Huy, President of Novaland, said, “Warburg Pincus’ proven track record of supporting successful real estate businesses in Vietnam and Asia will be invaluable to us, and we look forward to working with them on the next chapter of growth. Novaland.

The Warburg Pincus financing represents Novaland’s second successful fundraising from international investors in less than a year since issuing international convertible bonds listed on the Singapore Stock Exchange in July 2021.

Jeffrey Perlman, Managing Director, Head of Southeast Asia and Asia-Pacific Real Estate at Warburg Pincus, said the investment further reinforces its strong commitment to Vietnam. With its continued urbanization, emerging middle class, and increasingly diverse economy, Vietnam is poised for significant growth in the years to come.

“We are very excited to invest in another leading Vietnamese company and look forward to collaborating with the high caliber management team of NovaGroup and Novaland,” he added.

This transaction marks the beginning of a strategic partnership between Novaland and Warburg Pincus. This is Warburg Pincus’ sixth investment in Vietnam.

Warburg Pincus, a global private equity firm focused on growth investing, has since 2013 invested more than $1.5 billion in equity in several of Vietnam’s leading companies, including Vincom Retail, the retail platform modern in Vietnam, which was entirely abandoned in 2019, BW Industrial Development, the largest logistics and industrial developer in Vietnam; Lodgis Hospitality, the largest integrated hotel platform in Vietnam, Techcombank, the largest joint-stock commercial bank in Vietnam, and MoMo, the largest fintech platform in Vietnam.

The company is also the largest and most active private equity investor in Vietnam, having invested or committed over $1.5 billion in Vietnam since 2013 and completed two of the largest IPOs ever in the world. countries – Vincom Retail and Techcombank.

Source: Hanoi Times


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