VIETNAM - Trinity plans $30 mln fund for distressed Southeast Asian assets

by lexie Thu Mar 08, 2012 2:56 pm

March 8, 2012

Trinity plans $30 mln fund for distressed Southeast Asian assets

Boutique investment firm Trinity is raising a $30 million fund that aims to reap returns by buying over distressed entities in Southeast Asia, and selling their fixed assets for a gain.

Vietnam, in particular, is ripe for such transactions as many international funds are looking to exit the market after buying real estate at lofty prices during its boom in the early and mid-2000s, Trinity's Bangkok-based chief investment officer Oliver Smith told a news conference on Thursday.

Vietnam's once red-hot property market has ground to a halt, with property sales in Ho Chi Minh City having fallen by half in 2011, while high interest rates have pushed buyers to the sidelines.

"Take the market exits and fund wind ups. If you look at Vietnam, there are a lot of opportunities there," Smith said.

With offices in Bangkok and Cambodia, Trinity invests in Asian countries, with a focus on Southeast Asia.

The new fund has received committed capital of $15 million, mainly from high net worth individuals, and Smith said he expects to do 3-4 of restructuring deals worth between $5-15 million each this year.

He said many funds were sitting on depressed property valuations in Vietnam and were keen to sell their assets as they near the end of their fund-life.

However, these international funds often find it hard to extract the proceeds from their asset sales immediately due to regulations in the respective countries. Therefore, Trinity will acquire the legal entities or holding companies of these funds, restructure them and then sell the assets for a gain, he said.

Trinity's fund, which aims to deliver an annual return of about 15-20 percent to investors, will also look for such opportunities in Thailand, Cambodia and Indonesia, Smith said. (Reuters)

http://www.vietfinancenews.com/2012/03/trinity-plans-30-mln-fund-for.html#more