Global Asia Real Estate Fund Acquires 17 Percent Stake in Refico
• Mr. Dash: Vietnam has emerged as an excellent investment destination in Asia and offers an array of investment opportunities
• Mr. Patnaik: The Fund is 100 percent invested within the required timeframe.
Global Investment House (Global) announced today that the Global Asia Real Estate Fund, an Asia focused real estate investment fund managed by Global acquired a 17 percent stake in RC Real Estate Development and Finance Corporation (Refico) in Vietnam which will be disbursed in tranches.
Refico is a prime real estate Vietnamese property development company established in 2003. The company is based in Ho Chi Minh City. Refico’s strength is built around its blend of local knowledge and networks, and the experience and expertise of its directors and senior executives. Refico’s team of management and directors has over 50 years combined experience developing quality projects throughout Vietnam and Australia.
Mr. Shailesh Dash, Head of Alternative Investments at Global said, “Vietnam has emerged as an excellent investment destination in Asia and offers an array of investment opportunities. With its recent accession to the World Trade Organization (WTO) in January 2007, continued economic liberalization and stability”.
He stated that Vietnam is once again attracting the interest of foreign investors. Since the start of the new millennium, the country has achieved an annual GDP growth rate of between 7 percent and 8 percent, coming second after China.
Mr. Dash explained, “The Fund’s investment into Vietnam is in line with our diversification strategy in the nascent economies in Asia which are capable of generating excellent returns. We are very optimistic about the country’s prospects and its sustained and rapid economic growth demonstrated over the last decade”.
Mr. Dash discussed how Vietnam’s promising economy and underdeveloped property market presents numerous opportunities and challenges. He said, “the Vietnamese property industry is relatively young as compared to other countries in Southeast Asia. The present demand for apartments, offices, hotels and shopping malls is strong but developers are struggling for liquidity. Until very recently, the liquidity of the property market was quite low”.
He added, “Economic difficulties and high interest rates were pushing local business sources for alternate means of capital. Vietnam passed through challenging times of high inflation and a liquidity crunch, however, we believe that companies armed with strong management teams and a good track record will survive and create value in the future”.
Mr. Dash further added, “This was an excellent opportunity for us to identify and invest in good assets in one of the high growth markets in the Asian continent.”
Speaking about this opportunity, Mr. Rakesh Patnaik, Head of Real Estate Funds at Global said, “We are pleased to announce our latest investment out of our Fund in a reputable company such as Refico”.
He added, “Refico currently has five mixed use projects at various stages of development in prime locations in and around Ho Chi Minh City. The company has been growing dynamically over the past few years and boasts an excellent pipeline of projects. We believe in the company’s capability to become a key player in the Vietnamese development and are very pleased to conclude this transaction”.
It is worth mentioning that the Global Asia Real Estate Fund was launched in 2006. It has tapped and made investments in Asia’s most promising markets which include China, India and now Vietnam. The Fund actively manages its investments through board presence and in-house project management capabilities. Following this investment, the Fund is 100 percent invested within the required timeframe.
