Warburg Pincus eyes acquisition of Vietnam-based casino resort

Warburg Pincus could not be reached for comment. The Grand Ho Tram, located near Ho Chi Minh City, comprises hotels, villas, a golf course and casino. The total investment cost for the project is $4.2 billion. An amount of $1.1 billion has been deployed in the first phase of the development, including hotel and resort facilities and a golf course that were opened in 2013 and 2014, respectively. In 2017, analysts at Union Gaming Securities Asia estimated the gross gaming revenue of the Vietnam’s casino marketing at as much as $1.2 billion. However, the country has to date not allowed local residents to gamble.

Several firms, including Asian Coast Development, the parent of The Grand Ho Tram, and Sun City-backed Nam Hoi An, have submitted proposal to the Vietnamese government for a pilot programme allowing local gamblers. However, the permission has been only granted to a Phu Quoc casino operator. The pilot will last for three years from 2019. Warburg Pincus has been growing its interest in Vietnam’s real estate sector.

In 2016, it forged a $300 million hospitality platform deal with Vietnam-based asset management firm VinaCapital. The platform then purchased the Metropole Hanoi Hotel, and founded Lodgis to acquire hotel facilities in Cambodia, Dealstreetasia earlier reported. In May last year, the private equity major joined hands with Becamex IDC to establish a $200 million logistics and industrial real estate investment vehicle.

Warburg Pincus’ first-ever investment in Vietnam was a $200 million funding for Vincom Retail, the mall operator of Vietnamese conglomerate Vingroup, in 2013. The American investor has injected a $100 million follow-on investment in Vincom Retail in 2015. Its most recent investment is a $370 million injection in Techcombank.

Source: Dealstreet Asia