Vincom is Vietnam’s largest owner and operator of shopping malls, with seven assets valued at about $1.1bn.
Warburg committed to invest at least an extra $25m for Vingroup’s future capital raises, and the consortium has the option of investing another $100m, it said.
That capital will be used to expand the platform and explore future retail property-related opportunities.
Warburg said the deal marked the largest initial investment to date in a Vietnamese business by a global private equity firm.
Joseph Gagnon, a managing director at the firm, said, “We are excited to partner with Vietnam’s premier property development group to further capitalize on Vingroup’s leading retail property platform and Vietnam’s favorable long-term economic outlook.
“We are confident that Vingroup’s unrivalled local sector knowledge and operational experience, together with Warburg Pincus’ proven ability to assist our partners in realizing their full potential, will enable us to benefit from Vietnam’s long-term economic growth, rapid urbanization and emerging middle class.
“We look forward to partnering with Mr. Pham Nhat Vuong, Ms. Le Thi Thu Thuy and the management team of Vincom Retail to support the continued development of Vincom Retail as the pre-eminent retail platform in Vietnam.”
Copyright © 2013 AltAssets