Novaland Investment Group Joint Stock Company, a member of NovaGroup, announced the completion of a $250-million fungding round by a consortium led by Warburg Pincus. This reputed real estate developer plans to use this investment to increase its strategic land bank and complete development of some major projects. This is also Novaland’s next successful fundraising from international investors in less than a year after the issuance of international convertible bonds listed on the Singapore Stock Exchange in July 2021. Credit Suisse acted as the sole financial advisor to Novaland in this transaction.

The point of view from Novaland

Bui Xuan Huy, Chairman of the Board of Directors of Novaland, emphasised: “We are delighted to welcome Warburg Pincus as a strategic partner. Warburg Pincus is one of the world’s most established and successful private equity investors, and its sizable investment demonstrates its great belief in Novaland’s growth potential. Warburg Pincus’ track record of assisting successful real estate enterprises in Vietnam and Asia would be valuable to Novaland. We expect this relationship to bear fruit in the Group’s new development phase.”

A NovaWorld showroom

This investment confirms Warburg Pincus’ consistent strategy of investing in the best Vietnamese businesses in the market. It also marks the beginning of a strategic partnership between Novaland and the U.S. fund. The collaboration will ally Novaland’s position in the real estate market with Warburg Pincus’ global real estate experience and expertise. The money will be used to acquire lands and develop ongoing projects in some important places, leveraging upcoming infrastructure in Vietnam’s southern region.

About Warburg Pincus

Warburg Pincus LLC is a global growth investor with more than $80 billion in assets under management. Its active portfolio, which includes more than 245 firms, is exceptionally diverse in terms of stage, industry and region. This transaction marks Warburg Pincus’ sixth investment in Vietnam. Since 2013 it has invested over $1.5 billion in several Vietnam’s leading businesses, including Vincom Retail, BW Industrial Development, Lodgis Hospitality, Techcombank, MoMo, etc.

Warburg Pincus Việt Nam
President Nguyen Xuan Phuc, and Timothy Geithner, President of Warburg Pincus

Jeffrey Perlman, CEO and Head of Asia-Pacific Real Estate of Warburg Pincus, shared: “This investment further reinforces our company’s long-term commitment to Vietnam with over $1.5 billion committed to date and continues its track record of backing market leaders in their respective sectors. We are very excited about the opportunity to invest in yet another great Vietnamese company and look forward to working with the management teams at NovaGroup and Novaland. We believe Novaland will be able to capitalize on the significant market opportunity, and we will use our network, experience and skills to assist Novaland in taking its business to the next level.”

Source of information is DealstreetAsia.