US buyout firm PHI Group to set up Vietnam real estate investment fund

US-based private equity investment firm PHI Group has entered into an agreement with Hanoi MHD Invest Joint Stock Company (MDH) to establish a real estate investment fund in Vietnam, according to the company’s announcement.

Under the agreement, the two sides will invest in a real estate sub-fund, under the master Reserved Alternative Investment Fund (RAIF) set up by PHI in accordance with the Luxembourg Institutional Bank Fund Laws. Quynh Nguyen reports on Deal Street Asia.

The size of the fund is not disclosed but it is expected that it will increase substantially over time to meet the growing needs of investment and development in the Vietnamese real estate market.

PHI will engage MHD for the execution of its building projects in Vietnam, including Asia Diamond Exchange in the Free-trade Section of the Chu Lai Open Economic Zone, Quang Nam Province, Vietnam.

In addition, MHD and PHI will cooperate to finance or invest in other third-party real estate and hospitality projects in Vietnam as opportunities arise.

PHI Group focuses mainly on acquisitions and buyouts in selected industries, investing in special situations and provides corporate and project finance services, including M&A advisory and consulting services for other companies.

MHD participates in construction, project management, real estate investment and development in Vietnam and is currently building two 40-storeyed towers in Hanoi.

Last year, PHI Group bought a minimum of 51 per cent interest in northern Vietnam-based agriculture company Hoang Minh Chau Hung Yen LLC (HMC) in a cash and stock transaction.