Asian Property Developer Targets Vietnam
An Asian property fund manager has been seeking to raise USUS$200 million over the last month for a property fund focusing on Vietnam and Malaysia.
The Jersey incorporated and London-listed Aseana Properties fund will be managed by the property team of Ireka Corporation, a Malaysian publicly-listed property developer, after its 21 February launch.
It will only invest in projects with a minimum annual 30 per cent return on equity (ROE) for Vietnam and a minimum 20 per cent ROE for Malaysia, and will acquire an initial portfolio of five development properties independently valued at USUS$259 million, generating ROE of more than 20 per cent.
It aims to generate total returns primarily through capital appreciation with potential for dividends over the medium and long term.
The fund will be 60-70 per cent allocated to Vietnam, 30-40 per cent allocated to Malaysia, and will focus on high-end residential, commercial and hospitality projects in high-growth locations.
“There’s a fair chance that this will get off to a good start just because it’s in Vietnam,” Mick Gilligan, head of research for Killick & Co, said. “It’s a really hot area with most funds there trading on big premiums, such as Vina Land, which is trading at an approximate 50 per cent premium.” (Young People)
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