Warburg-led group invests $100 mln in Vincom Retail

A Warburg Pincus-led consortium has invested another $100 million in Vincom Retail, a subsidiary of Vingroup Joint Stock Co. The Warburg-led group has invested a total of $300 million in Vincom Retail, including $200 million in May 2013. Vincom Retail is a shopping mall operator in Vietnma with 20 malls in operation or under development.

PRESS RELEASE

Hanoi, June 29, 2015 – Vingroup Joint Stock Company (HOSE: VIC, “Vingroup”), Vietnam’s largest publicly-traded real estate operator and one of the largest companies by market capitalization, today announced that a consortium led by an affiliate of Warburg Pincus, a leading global private equity firm focused on growth investing, has completed a follow-on minority investment of approximately $100 million in Vincom Retail, a subsidiary of Vingroup and Vietnam’s largest owner and operator of shopping malls.

The follow-on investment brings the total investment to date by the Warburg Pincus consortium to $300 million, making it one of the largest investments by a private equity firm ever in Vietnam. The Warburg Pincus consortium made the first investment of $200 million to help build out Vincom Retail in May 2013.

 

Vincom Retail, the largest shopping mall operator in Vietnam, currently has 20 malls in operation or under development. Together with a robust pipeline in prime locations nationwide, the company has the only true national mall network.

 

The existing prime assets of Vincom Retail include Vincom Dong Khoi and Vincom Thu Duc in Ho Chi Minh City, Vincom Ha Long, Vincom Ngo Quyen (Da Nang), plus Vincom Ba Trieu, Vincom Long Bien, Vincom Mega Mall Royal City and Vincom Mega Mall Times City in Hanoi. The properties have attracted leading global and local brands, as well as world class F&B and entertainment operators, leading to a transformation in shopping, dining and entertainment in Vietnam. The Vincom Retail malls are home to more than 700 domestic and international brands, with major tenants such as Robins Department Store, Marks & Spencer, CJ CGV, Mango, DKNY, French Connection (FCUK), BCBG Maxazria, Karen Millen, GAP, Lacoste, Nike, Adidas, Emigo, VinMart, VinPro and Vinpearl Land.

 

Ms. Duong Thi Mai Hoa, CEO of Vingroup, commented, “Vincom Retail has more than tripled the size of its portfolio since we first partnered with Warburg Pincus two years ago. The follow-on investment by the Warburg Pincus Consortium is a vote of confidence from our investors in our strong performance to date and our long-term vision for both Vincom Retail and Vietnam.  Warburg Pincus has been a great partner to date, and we believe this investment will help us to further accelerate the buildout of our malls as well as our broader retail platform, which includes VinMart, VinDS, VinFashion and VinPro, on a national basis.”

 

Mr. Jeffrey Perlman, Managing Director of Warburg Pincus, commented, “We are very pleased with the growth and performance of Vincom Retail since our initial investment.  We believe strongly in the long-term economic prospects for Vietnam on the back of continued urbanization and emerging middle class consumption.  With its best-in-class management team, leading integrated retail platform and unrivaled local expertise, Vincom Retail is poised for strong growth over the next five years.  We look forward to continuing to work closely with the Vingroup and Vincom Retail management teams to build the preeminent retail franchise in Vietnam.”

About Vingroup

Vingroup and its subsidiaries (the “Group”), with a market capitalization of USD3.2 billion as of 24 June 2015, are the largest listed developer and manager of real estate, hospitality and entertainment properties in Vietnam. The Group has developed a diversified portfolio across six business segments: Property: Vinhomes luxury apartments & villas, Vincom and Vincom Mega Mall shopping centers, and Vincom Office space for lease; Hospitality and entertainment: 5-star Vinpearl Resort, upscale Vinpearl Luxury resorts, Vinpearl Land amusement parks and family entertainment centers, Vinpearl Premium resorts and villas, and Vinpearl Golf Club; Retail: VinMart supermarkets,VinMart+ convenience stores, VinFashionVinDS chain of specialty retail stores, VinPro electronics and appliance stores, and Adayroi comprehensive E-commerce platform.

 

In addition to these three business segments, Vingroup participates in other segments aimed at improving the quality of life for the Vietnamese people. Among these segments are Healthcare: Vinmec quality healthcare services; Education: Vinschool quality education, and Agriculture: VinEco – Trusted quality source of food and the Group’s newest sector.

 

Vingroup was listed on the HOSE on 7 September 2007. More information on the Group can be found atwww.vingroup.net

 

About Warburg Pincus

Warburg Pincus is a leading global private equity firm focused on growth investing. The firm has more than US$35 billion in assets under management. Its active portfolio of more than 120 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 14 private equity funds which have invested more than US$50 billion in over 720 companies in more than 35 countries.

 

The firm has a proven track record as an investor in the consumer and retail sector globally and in Asia, building successful businesses and leading brands such as CAR Inc., Kidswant, Intime Department Store, Red Star Macalline, Franshion Properties and 7 Days Inn.

 

The firm is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mauritius, Mumbai, San Francisco, São Paulo and Shanghai. For more information, visitwww.warburgpincus.com.