Indochina Capital sets up first foreign real estate fund

Indochina Capital Corp has established Indochina Land Holdings, the first foreign fund that will invest in real estate in Vietnam. Indochina Capital managing director Rick Mayo-Smith talks about the US$42 million fund.
Indochina Capital has been investing in the country’s property market for along time. What made you set up Indochina Land Holdings?
Rick Mayo-Smith: We have been investing in Vietnam for 12 years and have developed and financed real estate projects valued at more than US$250 million.
We put money into Furama, Vietnam’s first five-star resort in Da Nang; the World Bank’s Vietnam head quarters in Hanoi; and the Saigon Centre in HCM City.
Now we are building Nam Hai a 60-room, 50-villaoceanfront complex near Hoi An along Vietnam’s central coast. The market is expanding, and we aim to have the biggest market share. That’s why we found the private closed end fund.
Which segments do you focus on?
We concentrate on residential, office, hotel and resort projects.
We believe Vietnam offers attractive returns to real estate investors as demand for apartments, office space and top hotels and resorts is growing while supply remains limited.
In addition, Vietnam’s strong GDP growth of more than 7.5% per year will ensure that demand for quality properties will continue to increase, creating many attractive opportunities for investment.
How long do you think it will take you to disburse the fund’s US$42 million?
We expect that it will take two to four-years.
Which projects is the fund eyeing this year? Indochina Land Holdings will debut by investing in two small projects next month—a resort in the central region and apartments in HCM City. They have a combined budget of US$5 million.

 

Category: Business