Cen Land (HSX: CRE) acquired Cenhomes.vn proptech platform

Cen Land announces acquisition of Cen Homes, the owner of Cenhomes.vn proptech platform with strong investment in digital transformation to perfect its ecosystem. This creates new opportunities, revenue and value for Vietnam’s brokerage market leader.

- How do you evaluate the proptech market in Vietnam?

Proptech in Vietnam is an emerging market that is drawing great attention of investors as well as startups. However, there is no regional or international platform or application yet. Successful platforms were quickly taken over by foreign investors. Therefore, to build a foundation "Make in Vietnam" has great significance, especially in the real estate sector.

Cen Land, as a real estate brokerage market leader in Vietnam, has acquired Cen Homes. With ambition, technological, financial capacity, and market-leading experience, Cen Homes is expected to become the first unicorn in this field in Vietnam.

- Can you share the reason why Cen Land decided to acquire Cen Homes?

As I mentioned above, the potential of proptech has motivated firms like Cen Land to transform to catch up with the trends. Digital transformation started with digital technology.

Cen Homes is a proptech platform in the real estate brokerage sector, the upgrade from nghemoigioi.vn by Worldstar Land. Cen Land has invested in the platform with exploratory shares.

In 2019, Cenhomes.vn, new version of nghemoigioi.vn, increased its charter capital to VND50 billion from outside shareholders and investors. At that time, Cen Homes attracted the attention of many domestic and foreign investors, including venture capital funds. However, at the shareholders' meeting of 2020, many shareholders assessed that Cen Homes is an essential platform for the development of Cen Land in the future, in line with the trend of proptech development and brokerage in the world as well as in Vietnam.

Cen Homes business results have demonstrated steady growth and good proptech platform. It is expected that Cen Homes revenue in 2020 will reach VND500 billion.

Based on these factors, the Board of Directors has decided to make Cen Homes become Cen Land's one-member company. This brings benefits to Cen Land shareholders and avoids arising conflicts of interest.

Technology products make in Vietnam

- Can you tell about the business results of Cen Homes?

Cen Homes is proud to be a Make in Vietnam proptech platform in the real estate sector. After its official launch in May 2019, Cen Homes has continuously updated its proptech platform.

In 2020, the number of visits on Cen Homes valuation tool is 478,613 times and the number of users is 377,592. Cenhomes.vn web platform has an average of 250,000 visitors/month with a total volume of 2,094 transactions.

- What is the development orientation of Cen Homes in the coming time?

In the future, Cen Homes will be a multi-application proptech platform. Accordingly, Cen Homes will be an effective assistant to the operations of agencies, brokers and customers to buy, sell, rent and lease real estate products.

Cen Homes is expanding into other areas such as industrial real estate and services, real estate logistics with Cen Zone, the secondary market, and short- and long-term rental applications under Cen Housing and Cen Stay brands.

Highlights of Cen Homes are the technology applications including AI marketing technology - customer search and intelligent interaction using artificial intelligence, virtual reality (VR), and augmented reality (AR) to increase customer experience. The core element of Cen Homes is the technology to collect and process big data with a highly accurate online real estate valuation tool in collaboration with Cen Value - Top real estate valuation company in Vietnam and are currently being considered by major banks to cooperate in implementing and using this service.

- Can you share more about Cen Land plans in the future?

Acquiring Cen Homes brings many advantages to Cen Land in the future as well as open up opportunities for many investors. Currently, Cen Land Board of Directors is studying to submit to the AGM a plan to issue additional shares to increase investment. One of these capital is used for development investment of Cen Homes proptech platform. Cen Land's plan for 2021 is expected to achieve a revenue of more than VND4,000 billion and maintain an average growth rate from now to 2023 at least 60 per cent/year.

In 2020, despite the impact of COVID-19 pandemic and difficulties of economic development, Cen Land had a successful year with many important marks. In July 2020, Cen Land won the Dot Property Vietnam Awards 2020 for Vietnam's Best Real Estate Agencies and Vietnam's Best Property Consultancy Firms.

In November 2020, Cen Land was awarded as "Asia's 200 Best Under A Billion" by the world-renowned financial magazine "Forbes". Most recently, Cen Land was recognized for the third consecutive year in the list of the Top 500 largest enterprises in Vietnam voted by Vietnam Report.