Vietnam’s Vingroup enters Australian property market with $22.5m land deal
Vietnam-based real estate-to-retail firm Vingroup has forayed into the Australian property market with a $22.5-million purchase of land in Sydney’s central business district, according to The Australian.
The Vietnamese top property developer will build a hotel complex in the city. It will conduct the sale process through a special purpose vehicle in Hong Kong to buy the site on Clarence Street from Alfasi Group, the report said.
The selling agents were reported to be Andrew Langsford and Peter Harper of JLL Hotels.
Meanwhile, a communications official from Vingroup said the company could not give any confirmation or comment at this point of time.
A 172-room hotel was proposed for the 1,030 square metre land, but no development approval has been reached, while it is also learnt that Vingroup will probably construct a mixed use development including a hotel.
The site, previously an Ausgrid substation and located near Barangaroo and the International Convention Centre, was sold within weeks of its listing late last year, thanks to the popularity of tourism investment in the country because of the low Australian dollar, the report said.
Vingroup’s property portfolio in Vietnam comprises luxurious condos and villas, shopping malls, tourism complexes and also retail outlets.
Vingroup has three resorts in Nha Trang Bay and a 200-room Vinpearl Premium Da Nang hotel in central Vietnam.
Listed Vingroup is currently one of the three largest stocks in Vietnam in terms of market capitalisation.
According to the company’s financial statements and local media reports, its total assets by the end of 2015 touched VND146 trillion ($6.5 billion), far beyond other business majors such as diversified Masan Group (VND72 trillion), automaker Truong Hai (VND30 trillion), technology company FPT Corp (VND26 trillion), and even several banks like Eximbank and VIBank.