VinaCapital to invest US$10 million in Vietnamese real estate firm Ricons

Mon Mar 19, 2018 - 5:03am GMT+0000
VinaCapital, Ricons
VinaCapital to invest US$10 million in Vietnamese real estate firm Ricons

VinaCapital, Ricons

19/8/2018 – Vietnamese asset management firm VinaCapital is investing US$10 million in Ricons Construction Investment JSC, a subsidiary of the country’s leading developer Cotec Construction Joint Stock Company (CotecCons).

Fundings for the investment was made through its London Stock Exchange-listed Vietnam Opportunity Fund (VOF) and VinaCapital said, “this investment is consistent with our strategy of investing in companies benefiting from strong domestic growth.”

Aside from VinaCapital, other investment funds which also invested in Ricons include Dragon Capital, SSI AM, and Daiwa Investment.

Founded in 2004, Ricons is a real estate investment company that later diversified into construction. It has since implemented large civil and industrial projects across the country, like Lakeview City, River Panorama, The Pegasuite, and others.

In January, Ricons completed its offer for the sale of more than 8.13 million shares to the public, earning VND203.4 billion (about US$8.94 million) in the process. The company on March 14, also officially increased its charter capital to VND 305 billion, which translates to US$13.4 million.

In 2017, Ricons exceeded its set target for both revenue and profit by 37 and 50 percent respectively with a net revenue at VND6.5 trillion (US$268 million) and net profit at VND287 billion (about US$12.6 million).

CotecCons, one of the investors in Ricons which owns nearly 15 percent investment stake, was selected as the general contractor for the 81-storey Landmark 81, part of Vinhomes Central Park developed by real estate giant Vingroup.

Founded in 2003, VinaVapital is a leading investment and asset management firm headquartered in Vietnam, with a diversified portfolio of US$1.8 billion in assets under management.

Last month, its investment vehicle VOF acquired a significant minority stake in Ba Huan JSC, the country’s leading eggs and poultry meat producer for US$32.5 million.

VinaCapital’s flagship fund earlier also invested approximately about US$45 million into two subsidiaries of PetroVietnam – PV Power and Binh Son Refining and Petrochemical (BSR) as part of their IPO conducted in January.

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Vivian Foo is a reporter who writes about Southeast Asia’s technology and startup space. The entry point which led her to write about the startup ecosystem was her fascination of the dot-com boom. She is taking a deep dive into how the entrepreneurial mindset works and hopes to share the insights, innovation, and stories of the startups with her readers.