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Singapore's Temasek in KKR-led group that buys 6% of Vietnam’s Vinhomes

Vietnam’s properties
By Asia Asset Management  
June 19, 2020

Singapore state-owned investment company Temasek Holdings and US private equity manager KKR are among a group of investors that acquired a 6% stake in Vietnam property developer Vinhomes for 15.1 trillion Vietnamese dong (US$650 million) from its parent Vingroup.

The investment “underscores the attractiveness of Vietnam as a regional investment destination with its strong development and growth prospects”, KKR and Vingroup say in a joint statement on June 17.

They didn’t disclose the identity of the other investors or their individual investments, which was made through a KKR-led consortium.

KKR’s own investment was via its $9.3 billion Asian Fund III which focuses on private equity deals in Asia Pacific.

Vinhomes was listed on the Ho Chi Minh City Stock Exchange in 2018.

“This investment exemplifies the type of platinum brands and management teams KKR looks to work with in Southeast Asia,” Ashish Shastry, co-head of private equity at KKR Asia Pacific and head of Southeast Asia, says in the statement.

KKR has formed long-term partnerships with Asian institutional investors like Temasek for investments across the region in order to leverage their strong local resources, according to a fund analyst based in Hong Kong.

“KKR entered Vietnam in 2011. We expect the fund will speed up its acquisition activities in the market with the country’s fast-growing economy,” he tells Asia Asset Management, speaking on condition of anonymity.

New York-listed KKR had around $207 billion of assets under management as of March 2020.

Temasek Holdings had S$313 billion ($230.6 billion) of total assets as of March 2020.