Warburg Pincus Leads US$250 Million Investment into Novaland, one of Vietnam’s Leading Developers Jun 1, 2022
- A Warburg Pincus-led consortium has completed a US$250m investment into Novaland, one of the leading developers in Vietnam with an established track record of approximately US$10 billion in Gross Development Value sold since 2009
- This investment further reinforces Warburg Pincus’ long-term commitment to Vietnam as the largest private equity investor in the country with over US$1.5bn of capital committed to date and continues Warburg Pincus’ track record of backing market leaders in their respective sectors
- Novaland intends to use the proceeds to continue to expand its strategic land bank and complete the development of ongoing flagship projects
Ho Chi Minh City and Singapore, 1 June 2022 – No Va Land Investment Group Joint Stock Company (“Novaland”, HOSE: NVL), a key member of NovaGroup, one of the leading developers in Vietnam, and one of the largest companies by market capitalization listed on the Ho Chi Minh City Stock Exchange, today announced the completion of a US$250 million financing from a consortium led by Warburg Pincus (the “Warburg Pincus Consortium”).
Warburg Pincus, a leading global private equity firm focused on growth investing, has been investing in Asia real estate companies and platforms for over 15 years and is one of the largest and most active investors in Asia real estate today with over US$7.0 billion invested in more than 40 real estate ventures. Warburg Pincus is also the largest and most active private equity investor in Vietnam, having invested or committed over US$1.5 billion in Vietnam since 2013 and completed 2 of the largest IPOs ever in the country - Vincom Retail and Techcombank.
The investment is consistent with Warburg Pincus’ approach of investing behind best-in-class local partners in the market and marks the beginning of a strategic partnership between Novaland and Warburg Pincus. Through this collaboration, Novaland’s strong existing market position in the real estate sector – as exemplified by its excellent track record of development and sales, access to a sizable land bank and proven execution capabilities – will be complemented by Warburg Pincus’ global real estate experience and expertise.
Mr. Bui Xuan Huy, Novaland’s Chairman, said, “We are delighted to welcome Warburg Pincus as an important strategic partner. Warburg Pincus is one of the most established and successful private equity investors in the world, and their sizable investment into Novaland shows the strong confidence they have placed in Novaland’s growth potential. Warburg Pincus’ proven track record of supporting successful real estate businesses in Vietnam and Asia will be valuable to us, and we look forward to working together with them on Novaland’s next chapter of growth.”
The Warburg Pincus financing represents Novaland’s second successful fundraising with international investors in less than a year since the issuance of international convertible bonds listed on the Singapore Stock Exchange in July 2021. It is evidence of the strong confidence by international financial institutions in Novaland’s strategy in investment and development of residential, and hospitality-related real estate at the mid-to-high-end segment as well as industrial real estate. Proceeds of the US$250 million financing from this transaction will be allocated to land bank acquisition and development of ongoing projects in strategic locations, leveraging on upcoming infrastructure in the southern part of Vietnam.
Mr. Jeffrey Perlman, Managing Director, Head of Southeast Asia and Asia Pacific Real Estate at Warburg Pincus, commented, “This investment further reinforces our strong commitment to Vietnam. With its continued urbanization, emerging middle class and an increasingly more diversified economy, Vietnam is poised for significant growth in the coming years. We are very excited about the opportunity to invest in yet another leading Vietnamese business and look forward to collaborating with NovaGroup’s and Novaland’s high caliber management team. With its strategic land bank, leading brand and best-in-class execution capabilities, we are confident in Novaland’s ability to capitalize on the attractive market opportunity and we will leverage our network, experience and expertise to help Novaland take its business to the next level.”
This transaction marks the sixth investment in Vietnam by Warburg Pincus. Since 2013, Warburg Pincus has invested over US$1.5 billion of equity capital into several of Vietnam’s leading businesses, including Vincom Retail, the modern retail platform in Vietnam (which was fully exited in 2019); BW Industrial Development, the largest logistics and industrial developer in Vietnam; Lodgis Hospitality, the largest homegrown integrated hospitality platform in Vietnam; Techcombank, the largest joint-stock commercial bank in Vietnam; and MoMo, the largest fintech platform in Vietnam. Warburg Pincus is a strong believer in the Vietnamese economy’s long-term growth trajectory and continues to actively pursue new opportunities to invest in leading platforms in Vietnam.
Credit Suisse acted as the sole financial advisor to Novaland.
Novaland Group – a key member of NovaGroup – is a leading reputable real estate developer in the property investment and development industry in Vietnam. In the last 30 years, Novaland has developed more than 50 real estate projects, with a diverse range of products both being implemented and in operation, including apartments, shop houses, officetel 24/24, second homes and branded villas.
The Group’s land bank under possession and under research totals approximately 10,600 ha, for development in three key product suites, including residential real estate in central Ho Chi Minh City and neighbouring provinces, hospitality real estate in major tourism destinations, and industrial real estate. As a leading real estate developer, Novaland has an ambitious plan for expansion to 30 provinces with 50 mega-projects and urban areas by 2030.
Novaland is a VN30 company and one of the most active Vietnamese real estate developers on the international capital market with over US$1.6b raised from international investors since its listing in December 2016 to date.
For more information: www.novaland.com.vn
About Warburg Pincus
Warburg Pincus LLC is a leading global growth investor. The firm has more than $80 billion in assets under management. The firm’s active portfolio of more than 245 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 21 private equity and 2 real estate funds, which have invested more than $100 billion in over 1,000 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore.
Warburg Pincus began investing in Southeast Asia in 2013, and has since committed over US$3 billion in the region. The firm has built a strong track record as an investor in Vietnam, having backed successful businesses such as Vincom Retail, BW Industrial Development, Lodgis Hospitality, Techcombank and MoMo. Additionally, Warburg Pincus is also one of the largest and most active investors in the Asian real estate sector, where its portfolio companies include ESR, DNE, Princeton Digital Group and others. For more information, visit www.warburgpincus.com.
Huynh Thi Hong Khanh, Senior Manager of Communication and Media
Lisa Liang, Senior Vice President, Head of Marketing and Communications, China and Southeast Asia