View
221
Download
5
Category
Preview:
Citation preview
BANGLADESH | CAMBODIA | INDONESIA | LAO PDR | MYANMAR | SINGAPORE | THAILAND | VIETNAM
Developing Successful Real Estate Projects in the Mekong Region
French Chamber of Commerce Singapore 15 May 2014
1
B A N G L A D E S H | C A M B O D I A | I N D O N E S I A | L A O P D R | M Y A N M A R | S I N G A P O R E | T H A I L A N D | V I E T N A M
DFDL reach: from the Middle East to Southeast Asia
BANGLADESH | CAMBODIA | INDONESIA* | LAO PDR | MYANMAR | SINGAPORE | THAILAND | VIETNAM * In exclusive association with Mataram Partners
2
B A N G L A D E S H | C A M B O D I A | I N D O N E S I A | L A O P D R | M Y A N M A R | S I N G A P O R E | T H A I L A N D | V I E T N A M
DFDL Organization
DFDL
BUSINESS UNITS
REGIONAL PRACTICE GROUPS
ASIAN DESKS
SINGAPORE THAILAND VIETNAM INDONESIA LAOS MYANMAR BANGLADESH CAMBODIA
Singapore Bangkok,
Phuket, Samui
Hanoi Ho Chi Minh City
Jakarta Vientiane Yangon Dhaka Phnom Penh
Mergers & Acquisitions
Corporate & Commercial
Energy, Mining & Infrastructure
Real Estate
Tax & Customs
China Desk India Desk Japan Desk
B A N G L A D E S H | C A M B O D I A | I N D O N E S I A | L A O P D R | M Y A N M A R | S I N G A P O R E | T H A I L A N D | V I E T N A M
The Challenge of Investing in RE in SE Asia
4
B A N G L A D E S H | C A M B O D I A | I N D O N E S I A | L A O P D R | M Y A N M A R | S I N G A P O R E | T H A I L A N D | V I E T N A M
Always Do Your Homework!
Due Diligence:
1. Ownership;
2. Mortgages / Liens / Encumbrances;
3. Easements / Servitudes;
4. Encroachment (forest, natural parks, public domain)
5. Rights acquired by 3rd parties through usage
6. Assess legal risk of proposed structure and takeover target (“nominee,” tax issues)
5
B A N G L A D E S H | C A M B O D I A | I N D O N E S I A | L A O P D R | M Y A N M A R | S I N G A P O R E | T H A I L A N D | V I E T N A M
Restrictions on Investment
• Land;
• Structures;
• Condominium units; and
• Practical challenge of (lack of) local (bank) financing!
But some possible solutions / exceptions:
• Long term leases;
• Indirect local land holding company ownership;
• “Beneficial” ownership through finance structures; and/or
• Exemptions under certain investment or sector-specific laws
6
B A N G L A D E S H | C A M B O D I A | I N D O N E S I A | L A O P D R | M Y A N M A R | S I N G A P O R E | T H A I L A N D | V I E T N A M
Risk Mitigation
Title Insurance?...
Yes, in certain countries.
Investment “security”..
7
B A N G L A D E S H | C A M B O D I A | I N D O N E S I A | L A O P D R | M Y A N M A R | S I N G A P O R E | T H A I L A N D | V I E T N A M
THAILAND OVERVIEW
Private:
- Freehold land ownership: no! (except through Thaico holding company BUT BEWARE! “nominees”…)
- Ownership of structures (house): yes. generally in combination with land lease.
- Condominium: yes, but up to 49% of the total area of the private condominium property; rest leasehold.
- Leasehold: yes, but max lease term is 30 years.
Commercial:
As above but land ownership possible pursuant to certain investment privileges.
8
B A N G L A D E S H | C A M B O D I A | I N D O N E S I A | L A O P D R | M Y A N M A R | S I N G A P O R E | T H A I L A N D | V I E T N A M
MYANMAR OVERVIEW
Private: Just forget it for now… “T of IP Act of 1987.
Commercial:
-Freehold land ownership: No!
-Leasehold: Many possibilities for long term leases:
(i) MIC approved investments pursuant to the new FIL of 2012
(50+10+10);
(ii) Directive No. 3/1990: 30 yr lease “for the economic dev of the state”;
(iii) SEZ: 30+30+30;
(iv) Certain plantations: 30 yr
9
B A N G L A D E S H | C A M B O D I A | I N D O N E S I A | L A O P D R | M Y A N M A R | S I N G A P O R E | T H A I L A N D | V I E T N A M
INDONESIA OVERVIEW
Private:
Only foreign residents have certain property rights (to lease or use).
Local “representatives” are often used to hold land subject to loan and usage agts and a poa providing the foreigner with rights in the land.
Commercial:
Commercial property developments can only be undertaken by so-called “PMA” companies subject to foreign shareholder ratio’s in certain cases.
10
B A N G L A D E S H | C A M B O D I A | I N D O N E S I A | L A O P D R | M Y A N M A R | S I N G A P O R E | T H A I L A N D | V I E T N A M
11
B A N G L A D E S H | C A M B O D I A | I N D O N E S I A | L A O P D R | M Y A N M A R | S I N G A P O R E | T H A I L A N D | V I E T N A M
Regional Real Estate Investment Guide
12
B A N G L A D E S H | C A M B O D I A | I N D O N E S I A | L A O P D R | M Y A N M A R | S I N G A P O R E | T H A I L A N D | V I E T N A M
Lao Property Investment Guide
13
B A N G L A D E S H | C A M B O D I A | I N D O N E S I A | L A O P D R | M Y A N M A R | S I N G A P O R E | T H A I L A N D | V I E T N A M
2014 Legal, Tax & Investment Guides
14
Excellence · Creativity · Trust Since 1994
BANGLADESH | CAMBODIA | INDONESIA | LAO PDR | MYANMAR | SINGAPORE | THAILAND | VIETNAM www.dfdl.com
Recommended