Foreign fund invests $10 million in real estate broker CenLand

VinaCapital announces Vietnam Opportunity Fund (VOF) has invested $10 million in a real estate brokerage firm, CenLand.

The investment was made through Menzies Holding (Singapore) with the shareholding of 12 per cent stake in CenLand. The value of the company through this deal reaches $83 million while its charter capital is only VND500 billion ($22 million).

Previously, investment funds managed by Dragon Capital also purchased a 13 per cent stake in CenLand with the similar appraised value.

Founded in 2002, CendLand is currently prominent in the real estate brokerage market in the north of the country. The company is the pioneer in marketing Vietnam’s real estate to foreign customers and currently has 1,200 salespersons.

In 2017, CendLand sold more than 11,500 units (apartments and land lots), thanks in part to its good relationships with Vietnamese real estate developers such as Khang Dien House, Sovico, and Trung Thuy Group. The company gained $48 million in revenue and $11 million in after-tax profit last year.

This year, CenLand expects revenue to rise by 24 per cent to $61 million and profit up over 20 per cent. It targets to sell 16,000 units in 71 projects nationwide.

“The good relationship between CenLand and its real estate investors has brought significant competitive advantages to the company. We look forward to the company broadening its presence in the secondary brokerage market, where opportunities are expected to grow and to more fully develop and utilize digital sales channels,” Andy Ho, VOF Managing Director said.

VOF is the largest investment fund managed by VinaCapital, with total assets of $1.2 billion. In the field of real estate, this fund is investing in Khang Dien House.