Indochina Capital, a leader in Vietnam’s growing real estate, financial services, and capital markets is to become a key shareholder in collective workspace operator Toong following an undisclosed funding.
The financing deal comes after Toong has secured a strategic partnership with Singapore-based real estate group CapitaLand in developing co-working space outlets in Ho Chi Minh City.
“When Toong came to our attention, we were immediately interested because the company has the largest and widest footprint of any co-working space provider in Vietnam,” explained Peter Ryder, the Founder and CEO of the real estate investment fund.
Following this investment, Ryder along with the Co-founder and Chairman of Openasia Group Doan Viet Dai Tu will join the company’s board of directors.
Indochina Capital with its deep roots in the real estate market will be able to assist Toong in the management and design of its co-working branches.
Toong established its first location in Hanoi back in August 2015. The company became the country’s first chain of co-working spaces after launching three others last year in Danang and Ho Chi Minh City.
Three months ago, Toong also forged a joint effort with CapitaLand Vietnam to see a series of new co-working spaces in The Oxygen Mall.
“Toong has established itself as a leading player in Vietnam’s high octane coworking service and space market – forming relationships with Openasia, one of Vietnam’s leading investment firms and CapitaLand, one of Asia’s largest real estate developers,” said Ryder.
Toong is the first portfolio company of the private equity firm via its ICC-Kajima development platform – a US$1 billion joint venture which will be investing in Vietnam over the course of 10 years.
“Innovative change dominates the global real estate industry not just in Vietnam. This is evidenced by a growing number of companies that utilise co-working models to encourage disruptive ideas and cutting-edge technology in collaboration with other firms,” said Ryder.
“Indochina Capital and Toong will produce a portfolio of unique iconic spaces to nurture Vietnam’s entrepreneurial intelligence and culture,” he added.
The company will use the newly raised capital to expand its network of coworking spaces in Vietnam.