From the press and the media

Yaakov Engel to invest $1.1 billion in Real-Estate Projects in Vietnam

By Dotan Levi
01.09.2008 Calcalist

Controls Real-estate company Engelivenst, to construct roughly 9,000 housing units for Saigon´s upper class, on a total area of 960,000 sq. m. Projects are partnered by local banks, providing the buyers with financing as well as mortgages. Expected revenues: $1.6 Billion.

Private real-estate company Engelinvest, controlled by Yaakov Engel, is to invest roughly $1.1 billion in three projects, spanning the construction of about 9,000 housing units for Ho Chi Minh´s (Saigon) upper class in Vietnam. The projects shall be deployed in stages over several years and cover approximately 960,000 sq. m of construction.
Estimated revenues from sales is $1.6 billion. The company shall invest about $450 million in the first stage, in building about 400,000 sq. m of residential neighborhoods in the city, with estimated revenues of $650 million from this stage of the project.

Two of the projects are to be constructed in partnership with two subsidiaries of large local banks: The SACOMBank and the VP Bank, while the third project shall be in partnership with a local entrepreneur. The deals signed with the banks include a financing and mortgage obligation to the buyers. In addition, all the deals obligate the land owners to acquire the necessary construction permits and authorization required to commence construction. It should be noted that all of the lands have an authorized zoning plan and are in the midst of authorization processes.

As part of the partnership deals, both the local banks and the local entrepreneur have committed to invest their relative share in the equity and later remain partners in the projects at a 10%-20% share.

Engelinvest Group CEO, accountant Alon Avdany, in charge of all the group´s international activities, stated today: "We´ve identified Vietnam´s potentials as a developing nation in the midst of rapid economic growth, as a hot-spot for real-estate entrepreneurism, particularly in Ho Chi Minh City. The profitability of the deals signed with the banks´ subsidiaries…

[Inter alia, the attractiveness of the transactions signed with the subsidiaries of the leading banks derives from the banks´ commitments to finance the projects and provide mortgages under preferential terms and conditions to apartment buyers,"]

Engelinvest operates in Vietnam through a holding company, Venosa, which also operates in India and which is controlled by Yaakov Engel, Hezi Harmoni, David Brenner, Englelinvest CEO, Alon Avdani, Venosa CEO, Ronen Harmoni and the businessman, Yariv Landau. This company has been operating in Vietnam for a number of years and is a partner in the company´s business in the country.

Ronen Harmoni said today, "The participating banks and local partners will invest equity capital in the projects proportionate to their shares, a fact which was one of the catalysts in our decision to invest in these projects, in addition to the in-depth economic and marketing investigations that we executed in the field.”