SonKim Land receives its award in the category of the Most Notable M&A Deals in 2018-2019.
Vietnamese developer the Son Kim Land Corporation announced on August 2 it has successfully closed some $121 million in fundraising from an investor consortium led by EXS Capital, ACA Investments, and Credit Suisse AG, Singapore Branch. The renowned title recognises SonKim Land Corporation’s achievement in international capital markets.
It is a follow-up round of fundraising for Son Kim Land, following the initial investment of approximately $37 million in 2013 and $46 million in 2016 that sponsored, advised and led by the Hong Kong-based investment group EXS Capital.
EXS Capital has led over $650 million in alternative investments in Asia, representing over $1 billion in enterprise value, since its inception in 2007.
“We are pleased to sponsor this third round of investment in SonKim Land with additional investment from the Lemongrass Master Fund,” said Mr. Eric Solberg, CEO of EXS Capital. “As our partner since 2013, SonKim Land continues to deliver strong results and reinforce its reputation as one of Vietnam’s best real estate developers.”
This transaction has been SonKim Land’s biggest fundraising effort since 2013, making it a successful landmark for the company to continue to create high-end and more sustainable projects in its luxury real estate business segment.
SonKim Land has partnered again with Singapore-based ACA Investments and Lemongrass Master Fund (an entity managed by EXS Capital), both of whom have committed additional funds to the property developer, marking the second round of investment from ACA Investments and the third from Lemongrass Master Fund.
“We are delighted to increase our investment into SonKim Land more than five times from the initial investment in 2016,” said Hiroyuki Ono, partner at ACA Investments. “We are pleased to respond to their achievements by bringing more capital together with new investors like Credit Suisse. We continue to support SonKim Land and look forward to greater success.”
Meanwhile, ACA Investments has raised $70 million for its Vietnam-focused investment vehicles. The firm’s next investments in the country will focus on retail and logistics, and could save up to 15 per cent of the funds for public equity investments, Ono told DealStreetAsia earlier.
“Vietnam has become an exciting destination for investment capital. However, strategic investors take a careful view and to try to mitigate risks. With this fund, we can provide them with access to the market, especially after we have proven our success with Son Kim Land,” he said.
The company has also worked with new investors, including Skymont Capital, an Asia-based investment management group, as well as Credit Suisse, one of the most active global financial institutions in Vietnam, to secure the fund in a bid to foster its developments of luxury residential commercial and hospitability properties in Ho Chi Minh City. It is understood to be the first recorded investment by Skymont in Vietnam.
“We look forward to working with SonKim Land as well as the co-investors to create exceptional value for all stakeholders in one of the fastest-growing markets in the region,” said Mr. Alex Lin, Managing Partner at Skymont Capital. “This investment exemplifies Skymont’s continued commitment to the region.”
According to Rehan Anwer, co-head of Southeast Asia and Frontier Markets Investment Banking & Capital Markets at Credit Suisse, the financial services provider is committed to serving the diverse financing needs of entrepreneurs and it is thus proud to play a role in supporting SonKim Land’s further growth, as it fulfills its ambitions to be among Vietnam’s leading real estate investment and development companies. This transaction demonstrates continued international investor interest in Vietnam.
(Photo: SonKim Land)
Alongside these investors, Son Kim Investments, the parent company of SonKim Land, will also be participating in the fundraising round to continue fueling the company’s growth. The investor consortium and Son Kim Investments are investing through a combination of redeemable convertible loans and common equity.
With additional capital from the fundraising, SonKim Land will continue to develop more high quality projects for the Vietnamese property market and expand its business to build bigger-scale projects, industrial parks, hotels and resorts, offices, serviced apartments, and food and beverage outlets to maintain its leading position in the luxury real estate market.
“We’re very proud to win this award at the Vietnam M&A Forum,” said Nguyen Hoang Tuan, chairman of SonKim Land. “Following the success of two previous deals, SonKim Land and EXS Capital have been continuing efforts to raise funds for our high-end real estate projects.”
As the pioneer in the segment, SonKim Land focuses on delivering differentiated living experiences. The business strategy of the company is to focus on residential real estate projects, hotels, and offices in prime locations, bringing the experiences of quality lifestyle to high-class end users.
“The success of this $121 million in fundraising, with investments from prestigious international investors, marks a great milestone for SonKim Land,” said Mr. Nguyen Hoang Tuan. “We will continue to uphold our reputation as the pioneering luxury property developer in Vietnam as well as further expand our business in larger scale projects in the residential, commercial, and hospitality sectors.”
Since 2013, SonKim Land has grown rapidly, with its latest award-winning luxury properties in Ho Chi Minh City including Serenity Sky Villas and the launch of Metropole Thu Thiem. These developments have won several awards in Vietnam and globally, including Best Condominium in Asia-Pacific and Best International Condominium at the 2018 International Property Awards in London.
With this latest round of fundraising, SonKim Land will continue developing its pipeline of attractive developments across Vietnam.
The Vietnam M&A Forum is an annual event under the auspices of the Ministry of Planning and Investment, which has been held by VIR and AVM Vietnam since 2009. The forum is a place to exchange and share useful experiences, as well as discuss practical risks in mergers and acquisitions (M&A) through the evaluation and analysis of the best deals.
The forum also helps businesses and investors assess and review the development of the scale and nature of such activities in Vietnam over the past 12 months.
This year saw participation of 500 representatives from domestic and international enterprises and investment funds, accounting for 85 per cent of Vietnam’s deal value. The forum not only contributes to the promotion of foreign investment in Vietnam through M&A, a transparent market in both quality and quantity, and investment connection between domestic and foreign partners, but also offers many useful recommendations to government authorities to improve the legal framework and policies, contributing to promote economic growth and the international integration of the country.
The honorary ceremony announced a list of outstanding deals selected by an independent appraisal council. The most exciting in the 2018-2019 period focus on exploiting Vietnam’s market of more than 96 million people, including consumer goods manufacturing and real estate. Driven by growth momentum, it is forecasted that the value of M&A may reach $6.7 billion in 2019.
