Emerging giants in real estate market

By Ngoc Hai - Sep 24, 2017 | 06:52 AM GMT+7

TheLEADERMany enterprises have silently acquired the land fund for many years and suddenly become real estate giants as they unveil a series of projects at the same time.

Emerging giants in real estate market
The US$220.4 million Sunshine City project (Photo: Sunshine Group)

In the short time, Football boss Nguyen Quang Hien ,who is the President of Management Board and CEO of T&T Group JSC, the chairman of the Board of Directors of Sai Gon-Hanoi Commercial Joint Stock Bank (SHB) and Sai Gon-Ha Noi Securities Joint Stock Company, may become a tycoon in the field of real estate.

Despite not having a widespread reputation like Vingroup and Sungroup, two Vietnamese real estate giants, T&T Group has started spreading significantly in the real estate market. Its first project with 600 apartments in Hanoi is in the final stage and recently T&T Group also launched the T&T Victoria project which is located in Vinh city of Nghe An province.

In reality, besides finance, industry, agriculture, trade, and service, the real estate has been identified as T&T Group’s core area. Therefore, it has quietly acquired large land funds including many areas located in prime locations like No. 254 Minh Khai, No. 87 Linh Nam in Hanoi and other areas in Da Nang and Ho Chi Minh City, stretching from the north to the south of Vietnam for many years.

T&T is a typical testimony to the generation of emerging real estate giants. They may be well-known for financial investors and bankers but quietly gathering lands for a blooming day.

Nguyen Thi Nga, Chairman of Southeast Asia Commercial Joint-stock Bank (SeABank), Chairman of BRG Group, has been seen as a powerful woman in the field of finance. Even though Nga is not famous in the real estate market, her BRG Group has invested in this area since the time earlier than Novaland and Vingroup did with a unique way of acquiring but directly investing. BRG’s subsidiaries purchased Dong Mo golf course and Oriental Palace Apartment from a Thai investor more than ten years ago. It also surpassed many rivals to buy the 5-star Hilton Hanoi Opera hotel and Sedona Suites serviced apartments.

Chairman of BRG Group Nguyen Thi Nga introduces the Planning of Nhat Tan - Noi Bai Road Axis.

 BRG is also an important shareholder of Thang Loi hotel, a project located in a prime position next to the West Lake. Last year, BRG co-operated with The Hilton Hotels Corporation to develop two 610-apartment hotels in this area. BRG is finalizing the construction of Sheraton hotel in Da Nang with 258 rooms and 45 villas to prepare for the APEC 2017 Senior Week. It has been assigned to be the investor of a 2,080ha project worth US$4 billion located along the Nhat Tan-Noi Bai route.

Different from T&T Group and BRG, Sunshine Insurance Group headed by Do Anh Tuan quickly became well-known despite the short time trading in the real estate market. This corporation has been seen as a mysterious company as despite established in 2016, it has launched a series of projects like Sunshine Garden, Sunshine Palace, Sunshine Riverside and Sunshine Center with more than 3,000 apartments.

Recently, Sunshine Group has launched its Sunshine City project with six 40 storey towers located next to Thang Long bridge. It also plans to invest in 5,000 cheap apartments which are ten kilometers far from Hoan Kiem lake.

Besides, the real estate market has witnessed the emergence of many enterprises such as FLC Group, TNR Holdings, MIK Group and Tan Hoang Minh Group who possess loads of projects despite trading in this area for a short time.

Why are there many emerging real estate giants?

Phan Xuan Can, a consultant for transferring projects, said that even though real estate business is high-risk potential, the profit gained from it is also very great as only by investing in one or two projects, can enterprises become billionaires.

According to Forbes, real estate ranks third among the industries generating billionaires most, following finance and technology. It also confirms Vu Nhat Vuong, chairman of VinGroup, as Vietnam’s first billionaire.He went back to Vietnam from the instant noodle business in Ucraina to invest in real estate projects like Vincom Center in Hanoi, Vinpearl Nha Trang before marking the milestone with a series of big projects like Times City, Royal City, Vinhomes Riverside and Vinhomes Central Park.

Can said that there are many ways for enterprises to join the real estate market and gain achievements in the short time. Some companies may be successful in another core area which supplies the financial sources for them to invest in property. Also, many real estate giants are supported by tycoons in the areas of finance and banking.

Besides, some enterprises quietly acquired land funds and invest in real estate projects under the names of different companies but then changed their strategy towards the brand unification to have some projects with the same name.

One of the quickest way to dominates the real estate market is acquiring projects like the way Novaland, Sunshine Group did.