Asset Valuation for a Serviced Apartment – Ho Chi Minh City, Vietnam

Project Well-known serviced apartment in central district of Ho Chi Minh City Client Kenedix Site Area N/A Location Ho Chi Minh City, Vietnam Services Market Study, Scenario Analysis and Brokerage Opinion of Value

The Challenge

The client, a Japanese fund, identified the project as a potential acquisition target and entered into transactional due diligence. The client required a locally based hotels specialist that could advise on the appropriate input parameters of the valuation model that was being relied upon for the transaction.

The client also required assistance in conducting the due diligence and advice on repositioning the asset upon purchase.

Our Solution

Alternaty initially carried out market research for the foreign fund to get a good grounding of the competitive landscape for service apartment properties in HCMC.

A brokerage opinion of value was issued that the fund internally relied upon in making their formal acquisition bid. The opinion of value was based on multiple valuation methodologies to arrive at a reliable valuation figure, which incorporated the property’s unique history as well as its particular legal and ownership structure.

Alternaty was able to source a wide range of sales evidence and market comparables. Furthermore, to meet the high expectations of the Japanese fund, all parameters of the financial model were highly scrutinized with detailed market evidence provided that were used to underpin all assumptions.

The client was able to put in a formal bid with confidence and to the satisfaction of their investment review board.