Phu My Industrial Park 2 developed by Idico in Ba Ria-Vung Tau, southern Vietnam. Photo courtesy of Idico.
A subsidiary of construction giant Coteccons has acquired an 8.13 percent stake in industrial real estate firm Idico, signaling the former’s entry into a new industry.
The deal, valued at around VND854 billion ($37 million), was carried out by Covestcons, a property company.
Bolat Duisenov, the chairman of Coteccons, has said the company would branch out into more businesses including infrastructure and industrial real estate development.
Idico, formally known as the Vietnam Urban and Industrial Zone Development Investment Corp, was established as a state-owned company in 2000 with interests in industrial real estate and infrastructure.
But the Ministry of Construction last month sold its entire 36 percent stake in the company.
With a charter capital of VND3 trillion, Idico is the seventh largest company listed on the Hanoi Stock Exchange.
Its IDC stock has been rising relentlessly this year, doubling since the beginning of the year to VND36,200 at the time of publishing.
Industrial real estate developers have benefited this year from the rising demand from companies shifting their production out of China to other countries.
There are 280 industrial parks in Vietnam with an average occupancy rate of 70.1 percent and another 89 are under construction, according to the Ministry of Planning and Investment.