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Vincom Retail wins US$100m PE funding

Vietnam’s largest mall operator, Vincom Retail, has secured US$100 million in funding from a consortium led by private equity company Warburg Pincus.

It takes the US PE company’s combined investment in the Vietnamese property developer to $300 million.

Vincom Retail, the largest shopping mall operator in Vietnam, currently has 20 malls in operation or under development. Together with a robust pipeline in prime locations nationwide, the company has the only true national mall network.

The existing prime assets of Vincom Retail include Vincom Dong Khoi and Vincom Thu Duc in Ho Chi Minh City, Vincom Ha Long, Vincom Ngo Quyen (Da Nang), plus Vincom Ba Trieu, Vincom Long Bien, Vincom Mega Mall Royal City and Vincom Mega Mall Times City in Hanoi.

Vingroup CEO Duong Thi Mai Hoa said Vincom Retail has more than tripled the size of its portfolio since it first partnered with Warburg Pincus in 2013.

“The follow-on investment by the Warburg Pincus Consortium is a vote of confidence from our investors in our strong performance to date and our long-term vision for both Vincom Retail and Vietnam. Warburg Pincus has been a great partner to date, and we believe this investment will help us to further accelerate the buildout of our malls as well as our broader retail platform, which includes VinMart, VinDS, VinFashion and VinPro, on a national basis.”

Vingroup Joint Stock Company is Vietnam’s largest publicly-traded real estate operator and one of the largest companies by market capitalisation.

Vincom Retail’s properties have attracted leading global and local brands, as well as world class F&B and entertainment operators. The Vincom Retail malls are home to more than 700 domestic and international brands, with major tenants such as Robins Department Store, Marks & Spencer, CJ CGV, Mango, DKNY, French Connection, BCBG Maxazria, Karen Millen, GAP, Lacoste, Nike, Adidas, Emigo, VinMart, VinPro and Vinpearl Land.

Jeffrey Perlman, MD of Warburg Pincus, said his company was impressed by the growth and performance of Vincom Retail since its initial investment.

“We believe strongly in the long-term economic prospects for Vietnam on the back of continued urbanisation and emerging middle class consumption. With its best-in-class management team, leading integrated retail platform and unrivaled local expertise, Vincom Retail is poised for strong growth over the next five years. We look forward to continuing to work closely with the Vingroup and Vincom Retail management teams to build the preeminent retail franchise in Vietnam.”

Vingroup and its subsidiaries boast a market capitalisation of US$3.2 billion as of June 2015.

It develops and manages real estate, hospitality and entertainment properties in Vietnam across six business divisions – Property: Vinhomes luxury apartments & villas, Vincom and Vincom Mega Mall shopping centers, and Vincom Office space for lease; Hospitality and entertainment: 5-star Vinpearl Resort, upscale Vinpearl Luxury resorts, Vinpearl Land amusement parks and family entertainment centers, Vinpearl Premium resorts and villas, and Vinpearl Golf Club; Retail: VinMart supermarkets, VinMart+ convenience stores, VinFashion, VinDS chain of specialty retail stores, VinPro electronics and appliance stores, and Adayroi comprehensive E-commerce platform.

Vingroup also operates in Healthcare: Vinmec quality healthcare services; Education: Vinschool quality education, and Agriculture: VinEco – Trusted quality source of food and the Group’s newest sector.

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