Bridging Cross-Border Capital and Synergy to Vietnam and APAC

About

VPAC Capital is a cross-border real estate investment company which focuses on managing the funds of high-net-worth clients and institutional investors, looking for investment opportunities in the real estate sector in the Asia-Pacific region. The investment scope includes preferred stocks, mezzanine bonds and bridge loans, etc., as well as acquiring and rental management residential housing. The focus started from Vietnam initially.

The core team has rich investment and management experience in private equity and real estate funds, and international experience covers the Asia-Pacific area.

VPAC Capital has deep knowledge and practice in the local market, as well as the experience of parternership with public company. To address Vietnam's booming real estate market opportunities, provide overseas investors with a safe, simple, low-threshold and structured investment platform.

Headquartered in Shanghai, with branches in Taipei, Taiwan and Hanoi, Vietnam.

Opportunity

Rapid GDP growth & high trade surplus

The GDP growth rate has exceeded 6% for 7 consecutive years, and the growth rate of 2021 is expected to be 6.7%. In 2020 epidemic year, 2.5% growth is the best performance of APAC
Vietnam has achieved seven FTAs including ECFA (10 ASEAN countries + China, Australia, Japan and South Korea) and EVFTA (European Union), with a trade surplus of 100 billion U.S. dollars to date.
Vietnam benefits from trade war between USA and China. FDI increased by 18.5% year-on-year in the first three months, which Singapore, South Korea, and China as the top contributors (78%)

Abundant labor force & consumption upgrade

Vietnam has an abundant and young labor force (97 million total population, 33.7 years old on average; 51.7 million labor force over 15 years old). Which is one of the factors that fueling the success of industrial and service industries. And sizable domestic demand market.
The per capita GDP of 2022 reached US$4,100 (China reached it in 2008), and the demand for bulk materials such as housing, cars will keep increasing significantly.

Infrastructure acceleration & urbanization

The government has accelerated the construction of inter-city transportation, and the subway layout of Ho Chi Minh City and Hanoi will also be running (Ho Chi Minh 1st Metro will be ready this year), providing convenience for the suburbs and increasing the value of real estate.
More than one million farmers enter cities each year, and urbanization reached 41.5% in 2022, which is 20 years behind China (65% in China now and 83% in the United States). It will reach 45% by 2030, that is, approximately 70 million square meters of urban housing will be needed every year, and the demand for real estate keeps strong.
The Vietnamese have the same concept as most Asians, they are keen to own land and invest in real estate, also trade frequently.

Investment Strategy

Cooperate with local leading developers and financial institutions to invest in real estate development projects, and join commercial housing and land wholesale projects.
Focusing on the risk management, the local partner will provide the inferior rights or guarantee/collateral to ensure the safety of our investment and the rate of return
Accomplished first round of GP investment and safe exit, with the cooperation of a Vietnamese listed leading real estate company on the Hanoi apartment project, in Huang Mai district. The net return rate in the first six months was 7.16% (IRR=14.32%). And successfully completed the next round of financing, following investment in the apartment project in Ho Chi Minh City in July, with an estimated floating profit of 22% (before leverage considered)

Hang Day Stadium, Hanoi

Investment Type

According to market conditions and project requirements, investment involves different forms of products (preferred stocks, mezzanine bonds, bridge loans, commercial housing). Through clear investment return and investment risk analysis to position different investment products.
With clear investment return/investment risk analysis to position different investment products.
Improve the legal framework, ensure the liquidity of funds, and practice the exit mechanism.
Residential for value-added real estate funds focus on two types of higher value-added potential: entry level within metro apartments, with unit price less than US$110,000, and villas. The first-hand house will be decorated and outsourced for management and leased. Expected to sell with an appreciation of more than 30% within three years. IRR is expected to be 10%~18%
Development-oriented real estate funds, focusing on short-term participation in large-scale development projects or wholesales cases (3-12 months), expected IRR to be 12~15%