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 last year.
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.
Source : The Straits Times