REFICO represents a unique opportunity to invest in a significant stake in one of Vietnam’s most reputable and growing real estate development companies with an excellent track record of delivering quality projects and superior returns. The company possesses proven quality projects and pipeline, which allows investors the opportunity to invest into quality assets without going through a lengthy learning curve, and the first right to co-invest into the pipeline.
The real estate market is currently at the bottom of a cyclical over-correction. Vietnam has hit an inflection point with the property market and economy stabilising but the majority of the legacy distressed assets yet to be cleared out of the banking system. REFICO has seen through the past property cycle with a conservative financial discipline. With the right strategic partner and funding, REFICO will be uniquely placed to grow and benefit from its projects, its pipeline, and the opportunities than will its less disciplined peers.
REFICO’s competitive advantage lies in its ability to secure quality sites for development, historically at below market prices. This ability stems from the Company’s local knowledge and extensive networks, especially in the banking system and State Owned Enterprises (SOE’s), allowing REFICO to access distressed and undervalued real estate asset deals. The continued privatisation of State Owned Enterprises (SOE’s) has and will provide REFICO with further opportunities to access real estate opportunities at below market value. REFICO already has two such opportunities within its portfolio.
REFICO also has strong and long term relationships with planning authorities, local and foreign financial partners, contractors, and professional service providers both local and international, thus allowing the delivery of quality assets at a competitive local cost.
REFICO’s strategy going forward is to quickly develop its projects and pipeline in sync with the real estate market cycle, and continue to act opportunistically in all sectors but with a particular focus on residential and investment grade retail, expanding geographically to Hanoi with a preference toward river front community, metro, and prime locations. REFICO will continue to leverage on its extensive connections and networks, together with track record and financial capabilities to gain access to prime sites at below market valuation. On exit, while quality residential assets will be sold to a more sophisticated local audience and the coming foreign owners, investment grade assets will be exited to REIT and/or financial investors. There is a long history of interest in income producing assets in Vietnam but there have been few transactions as there has been so little appropriate product available. REFICO intend to continue to take advantage of this supply/demand gap and continue to design product to fit with the asset demand profile and thus better guarantee exits at higher cap rates, allowing increased returns and/or more efficient recycling of capital.