Japanese firm Sanei to inject more money into Vietnam's realty market
Japanese firm Sanei to inject more money into Vietnam's realty market
Japan-based real estate firm Sanei Architecture Planning Co., Ltd, is expected to purchase an additional 2.4 million shares in local firm Netland Real Estate JSC (NRC) to raise its stake to 18.75%.
Nguyen Huu Quang, deputy general director of Netland, said at a meeting with investors on February 26 that its Japanese partner Sanei would launch its bid for 2.4 million NRC shares out of the 12 million shares Netland will issue next month to raise its charter capital.
He added Sanei had joined Netland in the early days of its business, expanding its role from a major shareholder to a strategic shareholder. Last year, they clinched a comprehensive cooperation agreement on the execution of realty product exchange programs in both Vietnam and Japan. Also, Sanei has so far enabled Netland to secure funds for its projects.
Another Japanese investor, G-7 Holding, holds a 6% stake worth some VND120 billion in the local firm. The Japanese firm Anabuki is also a strategic partner of Netland.
“We have recently met many investors from Japan, Singapore and the United States. However, we are currently giving priority to capital flows from Japan, due to similar tastes,” the executive told the Saigon Times on the sidelines of the meeting.
Vu Ngoc Chau, a representative of Sanei on the Netland board of directors, revealed that Sanei has so far poured US$60 million into the Vietnamese real estate market, and the figure is expected to surge to US$100 million this year.
In 2018, Netland made VND72.1 billion in consolidated net profit, up 2.2-fold versus the previous year, while its revenue jumped 1.9-fold to VND176.7 billion. The firm plans to issue nine million shares to its shareholders from March 14 to April 10 at VND10,000 each, and expects to spend the proceeds from the share sale, some VND90 billion, on funding its residential block project in the southern province of Ba Ria-Vung Tau.
