KKR-led consortium enters into a $650mln investment in Vinhomes

Following the transaction, Vingroup, the leading integrated real estate developer in Vietnam will continue to be the controlling shareholder of Vinhomes. KKR is making the investment primarily from its Asian Fund III.

As of December 31, 2019, Vingroup currently owns 70.93% of Vinhomes.

The investment from the KKR-led consortium underscores the attractiveness of Vietnam as a regional investment destination with its strong development and growth prospects, the statement said.

Its investment into Vinhomes emphasizes the attractiveness of Vinhomes as an investment opportunity given its position as Vietnam’s leading integrated real estate platform.

“We are truly honored to have the opportunity to invest in a successful, leading business like Vinhomes which is an integral part of the consumer services ecosystem within the Vingroup family. This investment exemplifies the type of platinum brands and management teams KKR looks to work within Southeast Asia. Today’s announcement further underscores our strong commitment to Vietnam, where KKR has been active and present for nearly a decade”, said Ashish Shastry, Co-Head of Private Equity for KKR Asia Pacific & Head of Southeast Asia.

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, and credit, with strategic partners that manage hedge funds.

Bloomberg said in 2018, KKR raised about $209 million from selling its stake in Vietnamese conglomerate Masan Group after its shares doubled since the private equity firm invested.

The investor sold 54.8 million Masan shares at VND89,200 apiece, the midpoint of a marketed range.

Earlier in April 2017, KKR bought $100 million of Masan stock from Danish private equity firm PENM Partners. It also spent another $150 million for a stake in Masan’s meat unit. The investor injected $250 million in Vietnam’s food and beverage company Masan Group and its unit to help boost their competitiveness in the country’s $18 billion meat industry, according to Bloomberg.

Singapore-based Temasek is an investment company with a net portfolio value of $231 billion as of 31 March 2019.