Exciting M&A race in the real estate market

DNHN - When both foreign and domestic capital uses the M & A method to gain more market share, it will make the race to get into real estate more appealing, say experts.

In 2022, mergers and acquisitions (M & A) are thought to be going to the next level because of a lot of new laws that make it easier for businesses to start projects, make more products available in the market, and make the market bigger. 

When both foreign and domestic capital uses the M & A method to gain more market share, it will make the race to get into real estate more appealing, say experts. 

There is going to be a lot of activity in the real estate M&A race in 2022, after 2021 is a little less busy because of the epidemic. 

Mr David Jackson, the General Director of Colliers Vietnam, said that many investors think that a new economic growth cycle is beginning, and they know that they need to take advantage of it. Because of this, many investors who have strong financial abilities and a lot of extra money are looking for opportunities in the real estate M&A market when there are a lot of things going in the right direction, such as the recovery of the economy. 

Illustrative image (Photo: VNA).
Illustrative image (Photo: VNA)..

Public money should be invested in big transportation projects. It's a good thing that the government is sticking to its policy of living together. 

M&A activities are being encouraged by a lot of things, like the government's commitment to living together. 

From March 15, the tourism industry will be open again. As a result, investors still think that Vietnam is one of the best places to invest in the region because it has a stable government. 

Even though foreign investors are willing to pay 10 to 12 per cent more for a good project, domestic investors appear to have an advantage in the context of the epidemic because they are more familiar with business culture. And project legal procedures that are easy to follow for business. 

Another thing that some big real estate companies are doing to buy land is buying equity. This is in addition to the M&A projects that have been and are being done by companies.

If both foreign and domestic capital uses the M&A method, it will make the race to get into the market even more exciting. 

They say that the M&A race will keep getting hotter because it is a fast and powerful way for businesses to go deeper into their value chains, gain more market share and products, as well as continue to grow, access the market and bring common values to the community. 

In a world where land is becoming more scarce, businesses that have a lot of potential want to speed up the time it takes to get into the market with each specific project. 

This is why many businesses choose to do M & A.Businesses have also lost a lot of money due to the COVID-19 pandemic. 

They were no longer able to finish projects that had been started and had to sell them to businesses with more money. 

There are real estate companies in the country now that are having a lot of success and are ready to take over projects that the original investor can't finish. 

With their good name, good project development, and sales experience, they can start new projects quickly or keep old projects going through M&A. A lot of experts in economics and real estate say that the trend of M&A will keep going on for a long time to come. 

For example, Vinhomes and Novaland are still working on ways to find and buy land funds so that they can be ready for the next phase. 

Land funds are becoming scarcer, and project implementation procedures are becoming more strict. 

Many weak investors who can't stand the difficulties will have to sell the project or give up their shares to the owners. 

Other investments have a better chance. 

Because of this, the M & A market will be more active. 

A management agency's strict rules on corporate bonds in general, the real estate business, and credit capital flow restrictions are seen as bad by some businesses from their point of view. 

Flowing into this market will also make many investors to have trouble with their cash flow. 

So, they had to break up early and transfer fewer projects and land funds to make money. 

People will be more interested in the real estate M&A race in 2022 as a result of this. 

According to CBRE Vietnam, the majority of M&A deals in 2021 will take place in real estate projects in cities and suburbs. big cities like Hanoi and Ho Chi Minh City. 

There are a lot of good signs for transportation infrastructure investment and development in 2022, which will keep this trend going. 

People will be able to get from big cities to big cities more easily. 

The ring road, the highway, and Long Thanh airport connect the area around Ho Chi Minh City to Binh Duong, Dong Nai, and Long An. 

Many provinces and cities near big cities have had a lot of success with industrial production for a long time, which has made them good places for M & A to make land funds for investors. 

It hasn't changed what foreign investors are looking for when they invest. 

They still want projects that have a lot of legal completeness and have good domestic partners. 

However, the change can be seen in the fact that foreign investors aren't just looking for land funds with prime locations anymore. 

They're also looking for projects in nearby provinces to make more money. 

There are more and more projects where both domestic and foreign investors work together, as well as a need for strategic investment cooperation. 

Domestic real estate companies should have a lot of money and experience with projects so they can bring high-quality projects to the market that meet increasingly high international standards. 

This is done through several real estate projects that are run by five-star international hotel brands or smart and sustainable urban projects that are in the works. 

Hong Hanh

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