Berjaya Land Exits Vietnam With RM202 Million Hanoi Project Stake Sale
Berjaya Land Bhd (KL:BJLAND) has announced the disposal of its 80% stake in Berjaya-Handico12 Co Ltd (BHandico12), the master developer of Hanoi Garden City, marking its exit from a long-held international project in Vietnam. The cash deal, valued at 1.239 trillion Vietnamese dong (approximately RM201.96 million), is expected to be completed by the second half of 2025.
The transaction was disclosed in a filing with Bursa Malaysia on Thursday, June 12.
📍 About the Project: Hanoi Garden City
BHandico12 owns and manages the Hanoi Garden City development — a 78-acre mixed-use township located in Thach Ban Ward, Long Bien District, on the eastern edge of Hanoi, Vietnam’s capital.
The integrated project comprises:
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Residential homes and high-rise apartments
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Commercial zones
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Green parklands and lifestyle amenities
The location was originally targeted at Hanoi’s emerging middle-income and upper-middle segments, supported by proximity to major highways and developing urban infrastructure.
💼 Who’s Buying?
Berjaya Land’s wholly-owned subsidiary Berjaya Leisure (Cayman) Ltd is divesting the 80% equity interest in BHandico12 to two Vietnamese entities:
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Dong Thinh Phat Land Joint Stock Company (JSC)
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Green Hill Construction Investment JSC
These firms are expected to continue the development and commercialization of the township, capitalizing on Hanoi’s ongoing urban expansion and infrastructure investment.
💸 Deal Structure and Financial Impact
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Total consideration: 1.239 trillion VND (~RM201.96 million)
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Premium: 32.5% above BHandico12’s net assets as of March 31, 2025
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Carrying value within Berjaya Land: RM196 million
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Estimated gain on disposal: RM5.96 million
Proceeds will be channeled towards:
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Loan repayments
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General working capital for the group
Berjaya Land emphasized the transaction’s role in enhancing its cash flow and balance sheet health, with the added benefit of monetizing a non-core overseas asset.
🔍 Strategic Rationale Behind the Exit
Berjaya Land’s exit from Vietnam is part of a broader trend among Malaysian property developers to refocus on core markets and free up capital amid challenging macroeconomic conditions and currency volatility.
Over the past decade, Berjaya Group had made high-profile international bets including:
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Four Seasons Kyoto (Japan)
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Luxury residential towers in London
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Integrated developments in South Korea and Vietnam
However, project delays, foreign exchange risk, and shifting group priorities have led to several overseas exits or stake reductions in recent years.
The Hanoi Garden City project had seen limited headline traction over the past five years, with phases delayed due to pandemic-related restrictions and regulatory realignments in Vietnam’s property sector.
📉 Market Reaction and Financial Overview
Berjaya Land’s shares closed unchanged at 30 sen on Thursday, reflecting a market capitalisation of RM1.5 billion. Year-to-date, the counter has fallen 13%, mirroring overall bearish sentiment across the property and conglomerate-linked counters on Bursa Malaysia.
Despite soft market conditions, the group has been active in deleveraging, divesting non-core businesses, and seeking better-performing sectors such as hospitality, gaming (via Berjaya Sports Toto), and consumer retail.
🚀 What’s Next for Berjaya Land?
With the Vietnam exit, Berjaya Land is expected to:
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Streamline operations toward domestic and higher-margin developments
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Reinvest proceeds into projects with faster turnaround or recurring income
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Continue efforts in hospitality repositioning, especially within Southeast Asia and Japan
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Align group-wide restructuring goals with the Berjaya Group’s push for financial agility
Notably, founder Tan Sri Vincent Tan and his successor Datuk Seri Robin Tan have outlined ambitions to revitalise Berjaya’s core businesses, leveraging digitalisation and sustainability as growth enablers across its diversified portfolio.
📌 Conclusion
The disposal of Berjaya Land’s 80% stake in Hanoi Garden City represents more than just a divestment. It reflects a strategic recalibration to manage resources more efficiently, reduce overseas exposure, and focus on growth-oriented and liquid assets in more predictable regulatory environments.
The RM202 million cash inflow provides breathing room for the group’s debt management and working capital, while the gain on disposal supports its financial performance in a cautious but recovering property market.
