Vietnam Eximbank invests in property firm
HANOI, Jan 22 (Reuters) - Vietnam Export Import Commercial Bank (Eximbank), 15 percent owned by Sumitomo Mitsui Financial Group Inc (8316.T), said on Tuesday it had joined four domestic firms to establish a real estate company.
Exim Land, capitalised at 300 billion dong ($18.6 million), started operations at the weekend and would deal with real estate at home and abroad, the unlisted Ho Chi Minh City-based Eximbank, Vietnam's ninth-largest lender by assets, said in a statement.
It did not say what stakes were held by the partners -- Eximbank, Viet Dragon Securities Co, Nha Vui Architecture and Construction Co, Saigontourist and Savimex SAV.HM.
Vietnam's stock market has fallen 13 percent since the start of the year and a drive by commercial bank to boost loans for housing have prompted many domestic investors to further a hedging trend started last year by shifting funds to property.
Property prices in Hanoi and Ho Chi Minh City, where most condominiums are sold before construction begins, jumped 50 percent last year, also because the government eased terms for more overseas Vietnamese and foreigners to own a home in Vietnam.
Earlier this month, the central bank allowed Eximbank to raise its stake in Viet Dragon Securities to 18.1 percent from 9.9 percent.
Last year, Sumitomo Mitsui Financial Group Inc, Japan's third-largest bank, bought a 15-percent stake in Eximbank for $225 million.
Eximbank's assets soared 86.5 percent between the end of 2006 and last November to 34.03 trillion dong ($2 billion). ($1=16,102 dong) (Reporting by Ho Binh Minh; Editing by Michael Battye)
