At the quarterly conference held by Savills Q1/2011, Mr Brett Ashton – Managing director said that alliances between developers are never more crucial. The message was delivering through the door gift: A pack of pencils, symbolize the strength of unify.

The real estate packs

From 2008, Petrosectco has a plan of developing a 35 storey complex at Thanh Da Point and expected to be finished on 2011.

Being a capable member of Petro Vietnam, Petrosectco still has to postpone the project due to economic difficulty. Only until the beginning of 2011, with the joining venture of SSG Group, this project is brought back to life. The joint venture with a charter capital of 450bl VND will develope this project.

In fact, joint venture such as of Petrosetco & SSG Group is not rare especially with groups that do not have real estate as their core industry. This is also the case of Vinatex, being allured by real estate market and existence land bank of Vinatex, but only when join force with Thu Duc House, being able to develope project with a total investment of 1,700ml VND ( TDH – Phuc Tinh & Aquila Plaza).

International developers are also not stranger to the norm, such as the joint venture of Sacomreal and Gamuda Land of Malaysia to develope Celadon City in Tan Phu District (2,5mil USD).

Furthermore, Inveskia & Prudential also jointly develope Imperia An Phu; Thu Duc House & Deawon jointly develope Cantavil An Phu & Cantavil Hoan Cau.

Why there are still no bigger packs?

Addressing the joint venture trends in real estate, Mr Le Chi Hieu – ThuDuc House’s general director, said that especially in such a time when capital pressure is this high, seeking alliance is imminent for developers.

Sharing the same point, Mr Le Hoang Chau – President of HOREA also considers joint-venturing one of the main solution for real estate developers to maximize their competencies. However joint-venture so far is still a couple games.

The main objectives to joining such joint venture are land bank and developer’s competencies. SSG Group for instance, is a leading real estate developer in Vietnam with project such as Saigon Pearl (750mil USD investment) or Thaodien Pearl (2,000bil VND investment). ThuDuc House, in turn, also a reputation corporation in the industry.

Mr Chau also said HOREA encourage such joint venture to create sustainable corporations, even Multi-parties Corporation are not yet the norm, joint venture such as Futa Group and Duc Khai SSC is a bright example to build competitive Vietnamese real estate corporation.