The leading RE firm, Chesterton Petty Vietnam, has announced that it will re-brand as Savills Vietnam Ltd. effective Saturday June 2, 2007. The Vietnam RE markets are heating up across the board with Middle East investors entering the market and signs that the government may relax rules constraining foreigners from purchasing homes. Having been in the market for over a decade, Chesterton Petty Vietnam was one of the only agents to stick it out while others came and left over the years, allowing it to develop its market contacts and specialised knowledge. The group employs over 240 employees working in both commercial and residential real estate services.

On the decision to merge and re-brand, Brett Ashton, former General Director Chesterton Petty and now Managing Director Savills Vietnam said: “We haven't sold out. Given what's happened to Chesterton over the past few years, going into receivership in the UK and merging with Knight Frank in HK and China , we felt we needed to change direction while at the same time remaining part of a global firm.” Given their position as market leaders, “everyone who wasn't in the Vietnam market approached us, they were very, very keen”. In the end, Savills offered the best synergies, an aggressive expansion plan in Asia and a good fit in terms of corporate culture. Also, according Ashton, Savills expertise in the retail and residential markets was a factor. These markets are growing quickly in a market which is hot across all sectors, says Ashton. “A lot of offices in Ho Chi Minh have zero vacancy and we're seeing building pre-leasing for the first time. Even the retail market, which was non-existent, is now seeing big names coming in.”

Robert McKellar, CEO, Savills Asia Pacific said: “I am delighted that we have been able to make this investment. Vietnam is currently experiencing rapid economic growth with foreign direct investment expected to exceed US$13 Billion in 2007. The increasing demand from our clients, especially from Korea , Japan , Taiwan and Singapore , for real estate advice in Vietnam has been unprecedented.” Recent large deals in Vietnam include a proposed US$4 bil casino development, The King Hotel Investment group's US$65mil plans for a 150 room Raffles Resort and Dubai Ports World US$230 mil port project in Ho Chi Minh city. RFP

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