A consortium led by an affiliate of Warburg Pincus has committed to invest $200m in a strategic partnership with Vingroup Joint Stock Company, Vietnam’s largest private-sector real estate operator, to substantially build out its retail property business.
Comprised of seven assets valued at about $1.1bn, Vincom Retail is Vietnam’s largest owner and operator of shopping malls, which include world class shopping, recreational and dining facilities.
The two parties have entered into definitive agreements for the consortium to invest $200m to acquire about 20 percent equity interest in Vincom Retail. In addition, representatives of Warburg Pincus will join the boards of directors of Vincom Retail and Vingroup.
The definitive agreements also include a commitment from Warburg Pincus to participate in future capital raising by Vingroup in an amount of up to $25m, and an opportunity for the consortium to invest an additional $100m in Vincom Retail to expand the platform and explore future retail property-related opportunities.
Citigroup acted as the sole financial advisor to Vingroup. Simpson Thacher & Bartlett and Allen & Overy acted as legal advisors to Vingroup. Credit Suisse acted as the sole financial advisor to Warburg Pincus. Freshfields Bruckhaus Deringer (Hong Kong and Vietnam) and YKVN Lawyers acted as legal advisors to Warburg Pincus.
