BLand buying huge parcel of land in Hanoi

PETALING JAYA: Berjaya Corp Bhd (BCorp) unit Berjaya Land Bhd (BLand) is expected to secure a huge parcel of land in Hanoi, Vietnam soon for mixed property development with a total gross development value (GDV) of RM8.5bil.

A source close to the deal said BLand's top management was currently in Hanoi preparing to sign the agreement for the proposed acquisition this evening.

“We understand the land is massive, around 1,000 acres, and is located close to BLand's first property development in Hanoi – the 78.32-acre mixed development Thach Ban New City project in Long Bien district,'' he told StarBiz yesterday.

Thach Ban New City, worth a GDV of RM1.73bil, is due for completion in five years.

A local analyst said BLand's acquisition of the land, its second parcel in Hanoi, could arguably propel the company to be the leading Malaysian property investor in the republic.

He said BLand's other planned acquisitions included an integrated 2,185-acre township (with a GDV of RM12bil) and the 20.41-acre Vietnam Financial Centre (GDV RM4.17bil), both of which are located in Ho Chi Minh City; and a gated residential development on 5.23 acres (GDV of RM304mil) in Dong Nai province.

“We believe if the properties are acquired as planned, they would help boost BLand's property portfolio considerably,” he said, adding that the company had also announced plans to acquire several hotels in Vietnam, including the Sheraton Hanoi Hotel.

“Many of these property projects are pending investment licence approval from the Vietnam government soon, which would allow BLand to commence work immediately,” he said.

The analyst said BLand's management had been very aggressive in its negotiations with that country's local authorities in acquiring more land in Vietnam in the past two years.

“This is only the tip of the iceberg as BLand plans to acquire more land in strategic locations,” he added.

At a briefing for analysts and fund manager in Ho Chi Minh City last Thursday, BCorp chairman Tan Sri Vincent Tan said he would deliver on all projects as promised to the Vietnamese authorities.

He also said BLand aimed to be the “biggest Malaysian property investor'' in the republic.

On funding of the acquisitions, Tan said BCorp had sold off several mature properties, including some hotels and irredeemable convertible unsecured loan stocks for RM510mil, to finance some of the company's acquisitions in Vietnam.

A foreign analyst said BLand's move into and continued expansion in the republic had spurred institutional interest in the stock, especially in recent weeks.

“BLand's foray into Vietnam is a positive move that could potentially provide good returns,” she said.

The foreign analyst said institutional players were generally in favour of BLand's decision to dispose of its mature assets to finance property projects in Vietnam.