A KKR-led consortium, including Singapore’s sovereign wealth fund Temasek, has acquired a minority stake in the Vietnamese real estate development company Vinhomes for VND15.1trn (€574m).

The investment gives the KKR-led consortium a stake of around 6% in the Vietnamese company, which is the holding company of Vinhomes, a subsidiary of Vingroup.

Vingroup will continue to be its controlling shareholder.

Vinhomes is involved in the development, trading and leasing of residential, commercial and industrial real estate, and provision of real estate management and related services.

KKR is making the investment primarily from its Asian Fund III.

Ashish Shastry, co-head of private equity for KKR Asia-Pacific and head of Southeast Asia, described Vinhomes as a “successful, leading business” in Vietnam, and said it was an integral part of the “consumer services ecosystem within the Vingroup family”.

“Today’s announcement further underscores our strong commitment to Vietnam, where KKR has been active and present for nearly a decade.”

The investment from the KKR-led consortium reflected the attractiveness of Vietnam as a regional investment destination with strong development and growth prospects, said the consortium in a joint statement.

Nguyen Dieu Linh, chairwoman of Vinhomes, said: “As a reputable, world-class institution, KKR’s expertise and proven track record of helping companies achieve long-term success will be valuable as we work together to enhance value for Vinhomes shareholders.”

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