VietNamNet Bridge – Vingroup, a large real estate group in Vietnam, has spent 22.5 million Australian dollars (approximately US$16.1 million) to buy land in Sydney to develop a hotel project. This is the first business affair of Vingroup in Sydney, reported The Australian on February 15.

The site, fronting 183-185 Clarence Street in Sydney, is 1,030sq.m and previously owned by Alfasi, which recently sold another Sydney site, 65-79 Sussex Street, to Michael Kum’s M&L Hospitality for AU$22.5m, reported The Australian.

Vingroup proposed scheme to develop a 172-room hotel, but it is understood there is no development approval as yet. The site also has potential for mixed use development including a hotel.

The selling agents Andrew Langsford and Peter Harper of JLL Hotels could not be reached for comment at the weekend. But it is understood the site sold within weeks of its listing late last year possibly because of the popularity of tourism investment due to the low Australian dollar.

Alfasi could not be reached for comment.

Vingroup is no stranger to hotel projects having built three resorts in Nha Trang Bay including one with 483 hotel rooms and 168 villas. It also built the 200 room Vinpearl Premium Da Nang in Central Vietnam.

Some Vietnamese corporations have acquired foreign companies. Last year, Duc Long Gia Lai Group (DLG) acquired Mass Noble and the Ansen factory from the Global Emerging Markets (GEM) Fund of the US.

In 2014, FPT Corporation successfully acquired 100% of RWE IT Slovakia, the subsidiary of a leading energy group in Germany. The deal helped FPT have nearly 400 professionals and new clients in the European market.

PV