Gamuda Berhad bolsters presence in Vietnam with $300 million property acquisition

Gamuda Berhad, a prominent Malaysian real estate conglomerate, has announced a pivotal acquisition in Vietnam. The property in question, a substantial residential project, is being procured at an estimated value of $300 million. Its subsidiary, Gamuda Land, has been used as the vehicle for the transaction.

This bold investment could be one of the most consequential real estate mergers and acquisitions in Vietnam this year, emphasising Gamuda's continued confidence in the flourishing Vietnamese market.

The acquisition will see Gamuda Land purchasing the entirety of Tam Luc Real Estate JSC, through three of its wholly owned subsidiaries. The existing equity holders of the targeted company are individuals Nguyen Hong Giang, who holds a 50 per cent stake, Nguyen Van Viet with 46 per cent, and Dang Thi Dung with the remaining 4 per cent.

Tam Luc Real Estate is the investment force behind a planned residential project located in Thu Duc, Ho Chi Minh City. The project spans 3.7 hectares and includes an expected 2,000 apartments. With all necessary legal paperwork in order, the project is poised for immediate commencement.

In an interesting twist, despite its recent capital increase from approximately $37.5 million to $162.5 million on July 17, the Tam Luc residential project has been marketed on several property websites under the moniker The Riverdale. This development has been listed as an initiative from the Dien Phuc Thanh Construction and Housing Business Company.

Tam Luc and Dien Phuc Thanh are no strangers to one another, sharing connections through major shareholders. Dien Phuc Thanh, initially owned by Nguyen Minh Tam and Le Van Luc (each holding a 50 per cent stake), has seen a series of share transfers. Nguyen Minh Tam's stake has now been passed to Nguyen Hong Giang, whilst Le Van Luc's is in the hands of Nguyen Thi Kieu Tien.

Despite maintaining a rather discreet 20-year presence, Dien Phuc Thanh has a solid portfolio of projects primarily in Ho Chi Minh City. The firm is also recognised for its successful development of the upscale Phuc An Vien Cemetery Park project in the city's District 9.

On the acquiring side, Gamuda Land is among the most prominent foreign real estate developers in Vietnam. The company initially entered the Vietnamese market in 2007 with its maiden project, Gamuda City in Hanoi. From this foothold, it has expanded its operations to the southern region, with Celadon City in Ho Chi Minh City and Artisan Park in Binh Duong province.

This acquisition signals a significant chapter in Gamuda Berhad's expansion strategy in Vietnam's vibrant real estate market, and accentuates Vietnam's burgeoning appeal as a hotspot for international property investment.

Malaysian real estate developer Gamuda Land has been expanding its quick turnaround project strategy to deliver higher returns. Angus Liew, chairman of Gamuda Land Vietnam, exclusively shared the group’s development strategies with VIR’s Bich Ngoc.

Celadon Sports & Resort Club - complex sports project of Gamuda Land was awarded in the real estate purpose-built category at the FIABCI World Prix d'Excellence 2023 awards ceremony in Miami on June 8.