VinaLand, a public traded company on London’s Alternative Investment Market, has raised $407 million (€313 million) for investment in Vietnam’s emerging real estate sector.
The company, which raised the money by selling 295 million shares, said the funds surpassed the original target of $200 million and will be used to implement the company’s strategy to build a diversified portfolio of prime real estate assets spread throughout Vietnam’s most populated areas.
VinaLand was launched by Vietnam-based private equity firm VinaCapital and operates out of offices in Ho Chi Minh City and Hanoi. It was admitted to AIM last March.
Reports suggest the company is buying the 249-room Omni Saigon Hotel, a four star property.
Strong economic growth in Vietnam, coupled with a young and dynamic population and developing real estate laws that protect local and foreign occupiers of landed property, are creating substantial demand across all areas of the real estate market, according to the company.
VinaCapital managing partner and co-founder Don Lam said in a statement: “We are delighted by the response received from investors throughout the VinaLand fundraising. It is a clear reflection of their belief in the company and of the continued strength of both the Vietnamese economy and the country’s real estate sector.”
Government initiatives to stimulate the real estate sector include regulatory reforms and improved access for foreign investment.
In addition to VinaLand, VinaCapital manages the $790 million Vietnam Opportunity Fund, which also trades on AIM and also recently launched a $50 million private venture capital fund to invest in emerging technology companies in Vietnam.