Strategic partnerships on the increase as Vietnam property market moves onto new phase
|Sunday, 14 June 2009|
Real estate developers in Vietnam are drawing up strategic partnerships with other investors in a sign that the property market is maturing.
A lot of alliances and partnerships have been set up since the beginning of the second quarter, especially in the Ho Chi Minh City real estate market.
Analysts say that the professionalisation of investment, construction, distribution and management will be seen in the market as a move towards sustainable development.
Some of the major partnerships include Hoang Anh Gia Lai Housing Construction and Development Corporation opting for a strategic partnership with An Binh Land Real Estate Investment Company.
As An Binh Land is backed by An Binh Bank there is likely to be favourable loan agreements available to buyers. The Hoang Anh River View apartments will be the first development to be marketed.
Saigon Investment Corporation and US based Starwood have joined forces to develop two resorts, Le Meridien Danang Resort & Spa and Sheraton Dalat Resort & Spa.
Under the agreement SGI is the investor while Starwood is the manager of the two resorts which form a development worth $140 million.
It is expected that SGI will kick off the two projects in early 2010 and put them into operation in 2013, while the investor hopes to get back capital within seven years.
Thu Duc Housing Development Company and South Korea's Daewon Group are also working together on a 20 storey building in Hiep Phu. They are also working together on the Cantavil An Phu apartment project.
'An increasing number of strategic partnerships will enable larger projects to be developed. It is a sign of the real estate market in Vietnam moving onto its next stage of maturity,' said San Ang Hu, an analyst in HCMC.
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