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Novaland gets US$250 million investment from Warburg Pincus-led consortium

The Saigon Times

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HCMC – The No Va Land Investment Group JSC (Novaland) has announced a US$250 million financing from a consortium led by Warburg Pincus, a leading global private equity firm.

This investment further reinforces Warburg Pincus’ long-term commitment to Vietnam with over US$1.5 billion pledged to date and continues Warburg Pincus’ track record of backing market leaders in their respective sectors. The firm has completed two of the largest IPOs ever in the country: Vincom Retail and Techcombank.

Novaland intends to use the money to expand its strategic land accumulation and complete the development of ongoing flagship projects.

The investment is consistent with Warburg Pincus’ approach of investing in local partners in the market and marks the beginning of a strategic partnership between Novaland and Warburg Pincus. Through this collaboration, Novaland’s existing solid market position in the real estate sector as shown by its track record of development and sales, access to a sizable locations and proven execution capabilities will be complemented by Warburg Pincus’ global real estate experience and expertise.

Novaland Chairman Bui Xuan Huy 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 globally, and their sizable investment in Novaland shows the strong confidence they have 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. We look forward to working 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 Exchange in July 2021. It is evidence of the strong confidence of international financial institutions in Novaland’s strategy in investment and development of residential and hospitality-related real estate in the mid-to-high-end segment as well as industrial real estate.

Jeffrey Perlman, Managing Director, Head of Southeast Asia and Asia Pacific Real Estate at Warburg Pincus, said, “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.”

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 retail platform Vincom Retail, logistics and industrial developer BW Industrial Development, homegrown integrated hospitality platform Lodgis Hospitality, Techcombank and fintech platform MoMo.

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