VOF invests in convertible preferred shares of Novaland Group
Novaland Group is a leading private real estate developer in Vietnam and aims to become a recognized industry leader in the mid to high-end segments of residential apartment complexes and landed property. Novaland Group has established a strong reputation as a developer which focuses on well-located mid-scale projects. The company's projects located throughout Ho Chi Minh City and developed under the Novaland brand were valued at USD753.4 million as of 31 December 2014. The company has over 5,000 units either sold, pre-sold or under development, as well as over USD190.0 million in signed contracts to acquire additional land for future development.
Commenting on the transaction, Andy Ho, Managing Director of VinaCapital Vietnam Opportunity Fund stated: "We believe Novaland Group is a leading residential developer in Ho Chi Minh City with a good track record and a large existing land bank. The company has also done a tremendous job in reducing risk by diversifying their projects among several residential hubs throughout the city with a dense population and existing infrastructure.
"This investment falls within our strategy to gain exposure in the real estate sector through listed and private companies while seeking to divest our direct real estate holdings. We also look forward to Novaland Group continuing on with its planned initial public offering, which is expected to occur within the next 24 months."
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