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Category: Real Estate

Retail News Asia is committed to providing both local and global retailers with the latest Real Estate news throughout the Asian market. This on a daily base.

  • Property developers sell off assets to pay debts

    Property developers sell off assets to pay debts

    Property developers in southern Vietnam are selling off their assets despite losses to pay debts amid a slump in demand.

    A property developer in District 1, which develops projects in southern Ho Chi Minh City and Binh Duong Province, last month sold off one of its projects for VND300 billion ($12.71 million), 57% lower than its valuation.

    The company leader, who asked to remain anonymous, said that in May the landlord warned the company that it might have to move its headquarters if rents were not paid.

    “I had to mortgage my home and car to pay for the company’s rents and some short-term debts. I also had to reduce the office space to cut costs,” he said.

    Another developer in District 3 in the first quarter had to pay a VND300 billion debt and intended to use dozens of apartments as a mortgage, but the apartments were valued at VND200 billion, one-third less than three years ago.

    “Even though the assets were valued less I had to mortgage them to pay debts amid a cash crunch,” he said.

    In the second quarter, many premium apartments at a high-end project in District 1 were sold at a 40-50% discount, a price reduction of VND6-9 billion per unit.

    Nguyen Van Dat, chairman of Phat Dat Real Estate Development, said at a recent meeting that he had to sell off many of the company’s’ and his own assets to help the company pay debts.

    “I sold a VND3-trillion asset for VND2 trillion. I also sold and mortgaged many family assets to help the business through difficulties,” he said.

    Property developer Quoc Cuong Gia Lai is even considering selling its hydropower power plant in the central highlands province of Gia Lai to pay debts this year, even though the plant is making large profits.

    A recent report by the Vietnam Association of Realtors said that mid-2023 was the peak of difficulties for property developers and they had to sell off many assets for losses to pay debts.

    They either have to do this or sit still and eventually will go under due to the lack of revenue, he added.

    Tran Khanh Quang, CEO of property developer Viet An Hoa, said that the issues in the bond market and lack of access to new loans from banks, combined with declining property prices, have left companies struggling to survive.

    In the last two quarters, the situation might improve if loan interest rates are lowered, he added.

  • Hanoi speculative villa prices down 40%

    Hanoi speculative villa prices down 40%

    Amid rising interest rates, Hanoi’s cash-strapped villa investors are slashing prices by up to 40% to lure customers.

    Loi spent VND32.5 billion (nearly $1.4 million) on a 180-square meter villa near Ring Road No. 3.5 in mid-2022.

    He paid for the house with a bank loan and VND11 billion of his own money hoping his investment’s price would double in two years.

    Two months later, the real estate market went silent. He put the villa for sale at a discount of 15%, but found no buyers. Early this year, he finally sold the villa for only VND23 billion.

    But despite all this, Loi is still considered a lucky investor, according to Tien, a local real estate broker in the urban area surrounding the villa project Loi bought into.

    “Many other investors of villas at the same project haven’t found any buyers at all even after lowering their prices 15-30%.”

    According to Tien, since late last year, many investors in the project, most of whom took out bank mortgages to pay for the villas, have slashed their prices 20-30% to cut losses.

    One investor has recently sold a 150-square meter villa for only VND17 billion, incurring a loss of VND8 billion.

    Brokers at the Hinode Royal Park urban area are trying to sell villas at prices of VND6-7.5 billion, down 40% against last year.

    Tu, also a broker, said she sold two villas at the Nam An Khanh urban area in Hoai Duc District for VND23.5 billion each early last year, but the price of the same properties has dropped over 30% to VND16 billion now.

    Villa offering prices at many other large-scale projects, including the Ha Do Charm Villas and An Lac Green Symphony, have decreased 25-30% over the past year.

    Most of the villas are being bought and sold by speculators, and many of them have been abandoned.

    According to real estate consultancy Savills Vietnam, the average villa price on the secondary (resale) market was VND22 billion in the first quarter of this year, 17% lower than the properties’ primary market (original) prices.

    As a result, some investors have leaned deeper into the secondary market and many have become speculators.
    Experts have also asserted that this is one major reason that the primary market has been so stagnant, with the absorption rate falling to the lowest level in the past seven years.

    Do Thu Hang, senior director of advisory services at Savills Vietnam, has predicted that liquidity in the villa market is likely to improve, but only for villas bought as homes, not investments.

    After construction of Ring Road No. 3.5 and Ring Road No. 4 is completes, over 80 property projects along the major new arteries will attract more buyers, she said.

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  • Southern house prices down 30%

    Southern house prices down 30%

    The price of townhouses and villas in the South have dropped 10-30% year-on-year amid record-low sales in the first quarter of 2023.

    The prices in Dong Nai Province plunged 15-20%, even 25-30% in some cases, as cash-strapped investors have tried to cut losses, according to a survey.

    Many investors lowered their selling prices for villas in the province’s Bien Hoa City by VND4-5 billion ($169,000-211,000) per unit in late March, down from VND21-23 billion in early January.

    Some struggling investors said they slashed prices by VND5.5 billion per villa, accepting losses of 30%, including taxes, brokerage fees, and bank loan interest.

    Van, a real estate broker in the province’s Nhon Trach District, said that even though she had dropped her prices 15-20% by March, she still sold less than one townhouse a month in the first quarter of this year, compared with 5-7 units a month over the same period in 2022.

    According to the survey, average prices for houses in rural districts of Ho Chi Minh City and the neighboring province of Long An dropped some 10%, and few transactions have been completed so far this year.

    Property service provider DKRA Vietnam said houses in the South saw prices decrease by an average of 10% in the first quarter.

    Property consultancy JLL Vietnam said the sale of houses in Ho Chi Minh City dipped 91.7% against the fourth quarter of last year, and by 98.3% against 2022’s first quarter.

    In the first quarter of 2023, only 19 houses were sold, JLL Vietnam said, noting that most buyers and investors are adopting a wait-and-see approach.

    Real estate developers are cautious about launching new products amid economic uncertainty and lingering legal issues, especially as demand is forecast to remain weak through mid-2023 and the property market continues to face economic difficulties, according to JLL Vietnam.

    Vo Hong Thang, R&D vice director at DKRA Vietnam, said that despite the price drop, many buyers are waiting to fish the bottom or are too cautious about investing in real estate as the market is so quiet. This has resulted in record low liquidity this first quarter, he said.

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  • Landmark Unified Commerce Benchmark for Specialty Retail Released

    Landmark Unified Commerce Benchmark for Specialty Retail Released

    Manhattan Associates Inc., in partnership with Google Cloud and Zebra Technologies, has released the findings of the industry’s first real-world analysis of Unified Commerce in specialty retail. The Unified Commerce Benchmark for Specialty Retail, conducted by Incisiv, assessed 124 retailers across 11 specialty retail segments on the implementation of 286 key attributes of Unified Commerce.

    Based on insight from real purchases, returns, and customer journeys across digital and physical channels, the benchmark reveals the common attributes of successful retailers and the opportunities for others to improve their customer value and modernize operations. Of the 124 retailers benchmarked, 15 emerged as leaders. These brands are Academy Sports + Outdoors, American Eagle Outfitters, Belk Inc., Crate & Barrel, Levi’s, Macy’s, MAC Cosmetics, Neiman Marcus, Nordstrom, Pandora, REI Co-op, Saks Fifth Avenue, Sephora, UGG and Zales.

    In today’s rapidly evolving ecosystem, retailers need complete visibility on and insight into every aspect of their business, from back-end to customer-facing. Unified Commerce solutions combine a retailer’s front- and back-end systems to establish a single view of the business. That single view informs better decision-making and enhanced customer experiences, while enabling brands to identify and respond to trends quickly, ultimately driving stronger revenue growth by up to 6X. However, consolidating systems and building a cohesive Unified Commerce solution can be quite challenging. The benchmark identified the following common challenges in retailers’ efforts to adopt this new model:

    • Personalisation – Retailers must be able to identify shopper intent and curate a personalized experience that meets their expectations. However, only 38% of the retailers studied give their store associates access to shopper purchase history and wish lists across all channels. Only 20% of the retailers studied provided personalized product recommendations and offers. As a category, digitally-native vertical brands (DNVBs) outperformed the broader retail cohort in this area, with 42% offering advanced personalisation capabilities – 16 points ahead of the overall group examined.
    • Real-Time Inventory Visibility – Visibility into allocatable and saleable inventory and rich findability are critical for retailers wanting to provide a seamless omnichannel experience. Only 29% of the retailers studied provide real-time inventory statistics on their product detail pages.
    • Convenience and Flexibility – Today, convenience is about more than just speed of delivery. Convenience encompasses providing multiple payment and delivery options and the ability to make changes to an order after the sale. Only 15% of the retailers studied provided the option to change fulfillment method post order confirmation. On an average, only 27% of the retailers provided the ability to return store purchases online.

    “Shoppers don’t see channels the way retailers do. Unified Commerce can only provide the highly customized shopping experience expected by today’s consumers if there is true visibility of inventory availability, and flexibility during and after the sale,” said Manhattan Associates president and CEO, Eddie Capel. “Embracing a Unified Commerce model can drive strong business growth, high revenue opportunity, lead to competitive advantage and heightened customer loyalty that every retailer covets. With the right technology and solutions, they can outperform their peers by as much as 6X.”

    “Zebra Technologies is helping retailers globally optimize their inventory and engage their associates to improve productivity and deliver an elevated customer experience,” said Bill Burns, Chief Executive Officer, Zebra Technologies. “This new benchmark highlights the important role that real-time inventory visibility, front-line worker enablement, and fulfilment flexibility play in driving Unified Commerce, and we have the right solutions to deliver these benefits.”

    “In order to deliver on the promise of Unified Commerce, retailers must connect digital and in-person experiences, and all of the data and systems that enable them,” said Carrie Tharp, VP of Retail and Consumer at Google Cloud. “Manhattan Associates’ partnership with Google Cloud on this benchmark shows how retailers can make it easy for customers and store associates to find the right products online and instore by implementing a unified commerce strategy backed by data and AI.”

    Giri Agarwal, Chief Strategy Officer at Incisiv commented: “Unified Commerce is the new battleground for retailers to differentiate themselves. Our 2023 Unified Commerce Benchmark shows that leaders who have adopted unified commerce deliver highly nuanced, seamless customer experiences across channels, leveraging technology and data to drive revenue growth. The insights from this benchmark won’t just help retailers keep up, it will help them stand out.”

    Click HERE to view the complete 2023 Unified Commerce Benchmark for Specialty Retail. 

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  • Higher input costs, speculation drive housing prices up

    Higher input costs, speculation drive housing prices up

    According to experts, the increasing costs of land, materials, labor, legal procedures, and interest rates, as well as speculation, have all been pushing housing prices up for years.

    In recent market reports, the Ministry of Construction has confirmed that housing prices are currently unaffordable for many people.

    Le Huu Nghia, director of construction and real estate firm Le Thanh Company, said housing prices in big cities like Ho Chi Minh City are too high compared to ordinary middle-class incomes.

    Nghia said all high-end housing sells at high prices, while a shortage of social housing and affordable commercial housing has increased the average housing price.

    According to him, of the three reasons, housing development projects’ legality-related sluggishness is a huge cost push-up because of its impact on other costs.

    It takes 5-7 years or even longer for a project to complete legal procedures, so its developer incurs many costs while waiting.

    With loan interest rates of 11-14% a year, the prolonged time period increases 50-70%, or even 100%, in the project’s total capital cost. The final long-term use home buyer will have to pay more because the project’s production costs have also risen.

    The chairman of a firm developing residential real estate projects in HCMC’s Thu Duc City also said hefty input costs are the main reason for high housing prices.

    He added that land clearance compensation costs, which developers have to pay in advance, have also surged in recent years, and it often takes years to complete the site clearance process.

    According to businesspeople and experts, other factors contributing to high housing prices are speculation and price manipulation by some investors.

    Both Le Huu Nghia, director of Le Thanh Company, and Huynh Phuoc Nghia, a senior consultant at advisory firm GIBC, suggested simplifying legal procedures.

    Economic expert Huynh The Du said the State should ensure the consistency of housing policies and the transparency of real estate-related information.

    The government should create channels providing home buyers with enough data and analysis to make informed decisions, while also establishing mechanisms to more effectively screen and allocate capital to the development of different housing segments, he added.

  • Expat community flocks to Tay Ho for real estate opportunities

    Expat community flocks to Tay Ho for real estate opportunities

    Tay Ho has become an increasingly popular residential area among foreigners in Hanoi as the infrastructure and social amenities continue to flourish alongside a diverse range of convenient services.

    In Ho Chi Minh City, the areas of Phu My Hung and Thao Dien long ago emerged as cultural melting pots that attract both locals and expats from all over the world. However, in Hanoi, neighborhoods with a foreign presence are generally scattered and divided into separate communities.

    For instance, Keangnam-Me Tri is the hub of the Korean community, while Dao Tan-Kim Ma attracts many Japanese expats. Meanwhile, the Quang Ba area in Tay Ho is a gathering place for Western tourists, workers, experts and diplomats.

    In recent years, foreign residents have gradually gravitated towards the Tay Ho area. This area has received comprehensive investments in infrastructure and transportation. The neighborhood is rapidly developing with the emergence of international schools, hospitals, commercial centers, restaurants, and cafes, transforming it into a bustling hub of convenient amenities.

    In the near future, after the launch of major projects, such as the Samsung R&D office building, the Lotte Mall complex, and the 5-star Shilla Hotel, this neighborhood will become even more vibrant and dynamic.

    The growing appeal of this area among successful foreign residents and young Vietnamese will form an elite community, which will drive the potential for real estate rentals in the future. This will pave the way for developing upscale real estate products tailored to the needs of well-to-do people, such as SOHO Heritage West Lake.

    SOHO Heritage West Lake sits on Lac Long Quan Street, just a few minutes’ walk from the West Lake and the Lotte Mall, offering easy connectivity to the city center and the airport. It only takes 10 minutes to reach the Hanoi Old Quarter in Hoan Kiem District or 20 minutes to get to Noi Bai International Airport.

    The project features 202 SOHO (Small Office, Home Office) units designed for flexible use, with effortless switching between living and working spaces. This work-life blended lifestyle has gained popularity in foreign countries and has only recently made its way to Vietnam, and it is especially suitable for new-generation entrepreneurs who want to integrate their personal and professional lives.

    With modern designs and the availability of top international-branded products, each SOHO Heritage West Lake unit is a luxurious living and working space that meets the needs of both well-heeled Vietnamese and foreign experts.

    SOHO Heritage West Lake also owns 30 top-notch facilities, including a sky gym, a rooftop four-season swimming pool, and a well-designed commercial service area. The developer of SOHO Heritage West Lake has also collaborated with Toong, the leading coworking space chain in Indochina, to create an advanced coworking space spanning over 900m2 on the 5th and 6th floors of the building.

    These facilities not only provide a comfortable and convenient life for all, but also serve as a link connecting an exclusive community of entrepreneurs to expand their relationships.

    This project is backed by CapitaLand Development – a leading real estate developer in Asia. In 2021, CapitaLand Development (Vietnam) received the Outstanding Sustainable Developer Award at the PropertyGuru Vietnam 2021 awards for its innovative residential projects and constructing environmentally sustainable green buildings.

    Find more information about the SOHO Heritage West Lake Tower of the Heritage West Lake project at:

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  • Home rental market booming

    Home rental market booming

    Searches for rental properties in Hanoi and Ho Chi Minh City surged 101% in January against last year, while rents rose, according to the real estate website Batdongsan.

    In Hanoi, searches for rental apartments and houses increased 112% and 38%, respectively. The respective figures for HCMC were 157% and 107%.

    The average rent of apartments in Hanoi and HCMC climbed up 8% and 4%, respectively. The average rent of rental houses increased 33% in Hanoi and 18% in HCMC.

    Dinh Minh Tuan, head of Batdongsan in the southern region, said the reasons include a higher demand from enterprises and migrant workers.

    He said some firms, which downsized last year, are now renting premises with an area of 50-70 square meters in apartment blocks in city centers.

    The higher demand has led to higher rents.

    Selling prices of apartments have increased 30-40% over the past two years, but rents have risen at lower rates.

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  • Thai retail giant to invest $1.45B in Vietnam

    Thai retail giant to invest $1.45B in Vietnam

    Thailand’s Central Retail Corporation has announced it will double the number of its Vietnam stores with its largest ever local investment of 50 billion baht (US$1.45 billion).

    The chain’s number of stores will jump to over 600 in 57 of 63 cities and provinces with the new investment over the next five years.

    Central Retail CEO Yol Phokasub said the Vietnamese market has immense potential for continued economic growth.

    He predicted the country would post GDP growth of 6.7% this year and 7.2% next year, compared with Thailand’s average of 3.5% a year. “This will make Vietnam the fastest-growing market in Southeast Asia,” he said.

    Central Retail Vietnam has reported that in this year alone it will invest 6 billion of the baht in developing its businesses nationwide with a focus on food to reinforce its leading position in the nation’s hypermarket segment.

    The Thai company also plans to renovate 10-12 Nguyen Kim chain electronics supermarkets while opening 3-5 new supermarkets and Go! Hypermarkets.

    Central Retail Vietnam currently operates more than 340 stores. Its revenue surged from 300 million baht ($8.7 million) in 2014 to 38.6 billion baht ($1.12 billion) in 2021.

    A Central Retail manager said that in 2022 despite the impact of the economic recession, rising goods prices, and a consumer cut in spending, its sales grew in double digits thanks to its “always low price” policy.

    Japan’s Aeon plans to operate 100 supermarkets across Vietnam by 2025. South Korean retail giant Lotte has also said it will open more supermarkets in Vietnam.

    After gradually withdrawing from China, Lotte now regards Vietnam as its third most important market after South Korea and Japan.

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  • Taxing housing necessary but challenging

    Taxing housing necessary but challenging

    Experts say that taxing housing will help make the real estate market more transparent and prevent speculation, but it is necessary to digitize data, ensure fairness, and avoid overlapping taxes.

    The government plans to enact a new law on real estate taxation in place of the Law on Agricultural Land Use and the Law on Non-Agricultural Land Use, and separating houses and land for tax purposes.

    There is currently a very low tax on lands and, unusually for any country, none on houses.

    The Government is on course to submit the bill to the National Assembly for comments in October 2024 and approval in May 2025.

    Several experts said they agree that taxing houses and lands is necessary in the context that the property market is opaque and plagued by speculation, lack of systematization and ineffective management.

    Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said taxing housing and land would help make the real estate market fairer and more transparent.

    Nguyen Van Duoc, general director of Trong Tin Accounting and Tax Consulting Company, supported an increase in the tax rates on lands but warned it is necessary to safeguard the interests of the public and not adversely affect the market.

    “Taxing houses and other construction is also reasonable. Many countries around the world have done it for a long time.”

    Nguyen Mac Hoai Nam, general director of Nam Phat Investment Consulting Company, said tax policies often have a direct and almost immediate impact on investment behavior, speculation and buying and selling of properties.

    He explained that taxing houses and lands would enable authorities to monitor the market closely, increasing its transparency and making policymaking and management more efficient.

    But analysts also warned there would be many challenges in doing this.

    Duoc pointed out that taxing depends on databases and the capability of management agencies.

    Chau said to tax houses and other properties, it is necessary to reduce land-use fees to avoid excessive taxation.

    The land-use fee is collected once and not annually and accounts for 10% of the value of an apartment and 30% of a townhouse.

    In the case of villas, it accounts for 50%.

    If land-use fees remain high, the addition of property tax would make the burden excessive, he said, pointing out that developed countries collect house and land taxes annually.

    Nam suggested starting taxes on housing and land at moderate rates and then gradually increasing them so that people could get used to it.

    “It is also necessary to consider lowering the land-use fee.”

    First, government agencies need to get comprehensive data on housing and lands and come up with a convincing valuation method for the taxes.

    The data should be collated in time to ensure the new law is passed by mid-2025.

    Huynh The Du, a lecturer in public policy at Fulbright University Vietnam, said the database cannot be completed anytime soon.

    The country has over 27 million households living in more than 2.5 billion square meters of housing, but data on their prices is scant and many houses have not been traded for decades, he pointed out.

    In any case, the prices registered during transactions are much lower than market rates, he further pointed out.

    Dang Hung Vo, a former deputy minister of natural resources and environment, said the government should not rush to tax houses and apartments, but focus on taxing lands.

    This is more feasible because the country has an established land management system, he said.

    Urban residential lands are managed relatively well, and so taxing them is easy and efficient, he said.

    Meanwhile, it is necessary to perfect the system for assessing land prices to ensure they are close to market rates.

    “This is the first step before thinking about taxing houses.”

    It is difficult and complicated to tax housing due to the lack of an effective management system, he said.

    Analysts said local governments should collect the housing tax for investing in infrastructure and utilities like bridges and roads and planting trees.

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  • Thailand’s land prices skyrocket amid urban growth

    Thailand’s land prices skyrocket amid urban growth

    Land prices in Bangkok capital city of Thailand has skyrocketed 75% in recent years due to infrastructure development along with urbanization driven by mass transit expansion.

    Saenphin Sukhee, chief executive of residential developer Frasers Property Home (FPH), said land prices in Bangkok continued to grow despite the Covid-19 pandemic with an average increase of 70-75% during 2020-2022.

    Saenphin said actual prices of land have risen beyond appraisal land prices. Financial institutions cannot catch up with the rise. As a result, FPH got project loans lower than they should.

    The Real Estate Information Center (REIC) has recently reported the price index of vacant land in Greater Bangkok in the fourth quarter in 2022 at 381.4 points, an increase 12.5% compared to the same period in 2021 and rose 3.4% from the third quarter of 2022.

    REIC acting director-general Vichai Viratkapan said rices of vacant land kept increasing but the rises remained lower than the five-year pre-pandemic average of 14.8% year-on-year and 4.1% quarter-on-quarter during 2015-2019.

    He said the lower growth was derived from the global economic slowdown due to the pandemic and the Russia-Ukraine conflict and the normal collection of the land and building tax in 2021-2022.

    Meanwhile, land in outer Bangkok locations saw a rising change in prices as land prices remained low, viable to develop low-rise houses at affordable prices for mass market demand.

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  • Kuala Lumpur’s The Starhill reopens after major refit

    Kuala Lumpur’s The Starhill reopens after major refit

    Kuala Lumpur’s luxury shopping centre The Starhill has unveiled its new look, after a two-year transformation announced in 2019.

    Integrating hospitality into the retail experience, the shopping centre in Kuala Lumpur’s Bukit Bintang retail district has been repositioned as the “Home of the Tastemakers” where customers can shop and stay in a sophisticated home-like setting that offers experiential retail in a cosy, intimate boutique atmosphere.

    The new extension is linked with the lower retail area in one vertical seven-floor construction, featuring four floors of experiential retail space and three floors housing 162 hotel rooms under the JW Marriott Kuala Lumpur. More than 1100 rooms are connected to The Starhill by combining JW Marriott Kuala Lumpur and The Ritz-Carlton, Kuala Lumpur.

    “Our focus is to offer a holistic experience that goes beyond retail and dining, encapsulated in an intimate space with a sense of familiarity where patrons can escape from the hustle and bustle of the city,” said Joseph Yeoh, VP of YTL Land & Development.

    “This reinforces The Starhill as the place to be in Bukit Bintang, especially following the unveiling of Taiwanese bookstore Eslite Spectrum after a two-year journey setting up this creative art and cultural destination.”

    Defying the conventional mall developer’s mentality of ‘more is better,’ The Starhill is boutique-sized at 28,000sqm of retail space, of which more than 92 per cent is already tenanted, with 30 per cent taken up by food and beverage enterprises.

    The Starhill is home to local brands including Apollo Wellness Centre, Biologique Recherche and Opera Cafe, and international labels such as Paul & Shark, Philipp Plein, Roberto Coin, Shiatzy Chen, Stefano Ricci and Tom Ford.

    The Eslite flagship, the first in Southeast Asia, opened at The Starhill last week.

    Eslite Spectrum Kuala Lumpur, which occupies the entire 6500sqm of Level 1, offers a variety of books in addition to handmade goods and lifestyle brands. With more than 40 locations in Taiwan, including one open 24 hours, and branches in Hong Kong, China, and Japan, Eslite is of the largest retail book chains in Asia.

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  • Vingroup revenues down 5%

    Vingroup revenues down 5%

    Vingroup, Vietnam’s biggest private conglomerate, made total consolidated net revenues of VND88.191 trillion ($3.56 billion) in the first nine months, posting a year-on-year decline of nearly 5%.

    Vingroup gained after-tax profits of VND1.571 trillion, according to its latest consolidated financial statements.

    By the end of September, the firm’s total assets stood at VND555.571 trillion, up 30% against late last year, mainly due to successful transactions among new real estate projects.

    Vingroup said its property segment will continue to grow in the last quarter and next year, and its vehicle sales will rise in the last quarter. Its other segments, including trade center business, tourism, recreation, healthcare and education are also expected to recover.

    Since the beginning of this year, Vingroup has mobilized $760 million from the international capital market, including $625 million worth of international bonds and $135 million from an anti-climate change financial package from the Asian Development Bank.

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  • Siam Piwat to manage a new mall at Park Silom in Bangkok

    Siam Piwat to manage a new mall at Park Silom in Bangkok

    NYE & RGP Development Co., Ltd., a collaboration between NYE Estate Co., Ltd., and Minor International PCL, inks a strategic deal with Siam Piwat Co., Ltd. for a retail asset management and property management for “Park Silom”, a premium mixed-use project in the heart of Silom under the theme “New Breed of Silom.”  The retail space spans over five storeys of the total 39-storey mixed-used project that recently won prestigious international awards. The retail concept is envisioned to be a ‘one-of-a-kind retail experience,’ that caters to the lifestyles of office occupants along with Thai and international tourists with high purchasing power The collaboration between the three property and retail industry leaders, all with extensive experience in managing world-class and high-profile projects, will establish “Park Silom” as a new landmark in Silom – the prospering economic neighbourhood, by introducing a new lifestyle that responds to the multi-dimensional ways of living.

    Ms Ornruedi Na-Ranong, Chief Executive Officer of NYE Estate Co., Ltd, said “NYE & RGP Development, which is a joint force between NYE Estate and Minor International PCL, has developed Park Silom as a premium mixed-use office building and a retail space covering an area of six rai and 39-storeys right at the centre of Silom, based on a theme “New Breed of Silom.” The project is designed to offer an integrated lifestyle experience for locals and people working and living around Silom. We have signed the MOU with Siam Piwat in collaboration for retail asset management and property management, with the ultimate goal to fulfil the lifestyle of the new generations at  Park Silom and its neighbourhood, and for Silom people to be able to live a balanced life where work, shopping and after-work socializing perfectly integrated in a different and distinctive way.”

    “This collaboration with Siam Piwat, highly recognized as “The Visionary ICON”, will further enhance Park Silom’s credentials among retailers, thanks to Siam Piwat’s in-depth experience in property development which features numerous world-class projects that have earned many international awards and recognition. The proven success will create a new dimension to the intermix of Park Silom’s office building and retail space – to offer new experiences that cater to the multi-faceted work life and lifestyle of the building’s occupants which are mostly leading companies and international organizations, for “Park Silom” to become a new landmark of Silom,” said Ms Ornruedi.

    Dillip Rajakarier, Group CEO of Minor International, added “We are delighted to collaborate with the two prominent property and retail developers to develop an iconic “Park Silom” project.  Minor International has long experience in building and operating hotels, restaurants and mixed-use businesses globally. We are confident that we can employ our expertise in hospitality and retail, as well as key corporate support functions to contribute to this supreme quality business and lifestyle hub in Bangkok’s financial heart”.

    Chollachat Meksupha, Senior Executive Vice President of Business Development and Real Estate of Siam Piwat Co., Ltd., the leading property and retail developer – the owner and operator of prestigious retail destinations including Siam Paragon, Siam Center and Siam Discovery and a joint venture partner of ICONSIAM and Siam Premium Outlets Bangkok said, “Siam Piwat is delighted to develop ‘Park Silom’, set to become a new landmark of the Silom area which will play a very important role in reviving Silom as a prime Central Business District (CBD).  For the past 63 years, Siam Piwat has been ‘The Visionary ICON’ that excels in developing and managing world-class property and retail projects as well as global All of which have been pioneering milestones, new concepts that deliver the ultimate experience and delights for visitors. In this partnership, Siam Piwat will fortify retail asset management and property management for Park Silom, to achieve the fulfilling experience of an integrated urban work life and lifestyle.”

    Our partnership is formed at the right time, as Silom is a prime location and the centre that welcomes numerous leading organizations such as financial institutions, large corporate enterprises and multinational corporations. Hence, the Silom area welcomes many high purchasing power shoppers. At the same time, this business district also features retail brands and spaces to serve the lifestyles of the new generation who seek harmonious work-life balance.  The area also offers shopping and hang-out spots for office workers as well as local and international tourists who have been increasing in numbers following the country’s reopening.

    “We are confident that, Siam Piwat’s successful credentials as a developer of ‘World Class Destinations,’ together with our extensive knowledge, experience and expertise in multi-faceted areas including real estate development, retail business, shopping centres, food and beverages, marketing communications as well as the retail asset management and property management will ensure this collaboration is successful. It will also mark another retail breakthrough by creating a ‘one-of-a-kind retail experience that is unique and outstanding in the Silom area,” concluded  Mr Chollachat.

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  • Chinese Property Worries Trigger Surprise Trust Audit

    Chinese Property Worries Trigger Surprise Trust Audit

    China’s national auditor is making surprise checks in the nation’s $3 trillion trust industry which is also feeling the ripples of the ongoing property crisis.

    China’s National Audit Office has been inspecting the books of at least 20 trust firms in the last month – including the industry’s top five – according to a report citing unnamed sources.

    The firms are being asked to report on risky loans to developers as well as any plans for the disposal of such assets. The audit office is expected to submit its conclusions to policymakers in Beijing who could decide on future reforms for the sector. The inspection is still in progress and no conclusions have been made thus far.

    China’s trust sector is the most unconstrained funding channel in the financial industry with loans and investments across stocks, bonds, commodities, real estate and more. The sector was once a popular source of property funding with related investment products that were viewed as safe bets by wealthy Chinese individuals and institutions.

    The sector holds a combined 20.2 trillion yuan in assets ($3 trillion), as of end-March, according to the China Trustee Association.

    The surprise audit with a focus on real estate-linked risk occurs in the midst of an ongoing property crisis that has been headlined by mortgage boycotts over unfinished housing projects by cash-strapped developers. In addition to the trust audit, authorities have responded by offering grace periods for mortgage payments and the establishment of a fund by the People’s Bank of China to support developers to finish building homes.

    This year, trust firms have defaulted on about 58 billion yuan of property-linked investment products, according to data tracker Use Trust, which are popularly sold to wealthy Chinese.

  • Central Group unveils US$825m Vietnam expansion plan

    Central Group unveils US$825m Vietnam expansion plan

    Alibaba’s grocery store chain Freshippo is searching for to boost funds at a valuation of about $6 billion, a lot decrease than a hoped-for valuation of as much as $10 billion earlier this 12 months, three individuals accustomed to the matter informed Reuters.

    The corporate needed to reduce its valuation expectations after China’s COVID-19 restrictions, specifically a draconian lockdown within the financial hub of Shanghai, badly dented enterprise, they stated.

    Traders are additionally sceptical about whether or not loss-making Freshippo can continue to grow and switch a revenue anytime quickly given the corporate’s bleak outlook because the world’s second-largest economic system continues to pursue a strict coverage of stamping out COVID-19 instances, stated two of the individuals.

    The grocery store chain, generally known as Hema in Chinese language, is aiming to boost $400 million to $500 million from outdoors buyers, two of the sources stated.

    The fundraising is much from being finalised and monetary phrases may change, cautioned two of the individuals and a separate fourth supply with information of the matter. The entire sources declined to be recognized as the data was confidential.

    The fourth supply stated Freshippo would welcome good buyers to assist it develop however added it had a wholesome money stream and was underneath no fast stress to boost recent funds.

    Alibaba and Freshippo didn’t reply to Reuters requests for remark.

    Freshippo’s lowered ambitions for its first impartial personal fundraising spherical come amid a drop-off in investor curiosity globally in tech ventures which have but to show a revenue.

    Highlighting tumbling valuations globally, Swedish funds agency Klarna Financial institution AB stated on Monday it had raised $800 million of funds at a valuation of $6.7 billion, down round 85% from the $46 billion valuation it attracted final 12 months.

    Personal fundraising in China has additionally slowed since final 12 months as a result of a sweeping regulatory crackdown on the tech, tutoring, gaming and different sectors.

    Regardless of indicators that Chinese language regulators could possibly be easing up on regulatory crackdowns, dealmakers do not anticipate to see any fast funding surge within the nation given a downbeat outlook for the economic system.

    Based in 2015 and wholly owned by e-commerce behemoth Alibaba, Freshippo has 300 shops in 27 cities that present grocery supply companies, based on its web site.

    Shanghai is its largest market with 73 shops. Though residents in Shanghai relied closely on supply companies through the metropolis’s two-month lockdown this 12 months, grocers like Freshippo struggled to fulfill demand as a result of COVID-19 restrictions and disruptions to the nation’s provide chain.