ERA Realty Network (ERA) has signed a master franchise agreement with Vietnamese property brokering firm Eurocapital. This means that Eurocapital, which will be renamed to ERA Vietnam, will become ERA’s master franchiser in the country.
The partnership was inked on June 30 between ERA’s CEO Jack Chua and Eurocapital’s Chairman Nguyen The Nhien. The master franchise agreement will see more individual offices being set up in Ho Chi Minh City (HCMC) this year and Hanoi by next year under the ERA branding. As part of the agreement, ERA Vietnam will grow its sales force from 150 to 500 by end of this year.
“I want to open a chapter now in Vietnam because we are seeing Vietnamese venturing abroad to buy properties including in Singapore,” says Chua. “The Singapore office will also benefit whenever ERA Vietnam brings Vietnamese projects over or when we bring Singapore projects up there to sell.”
According to Chua, ERA was in talks with three companies in Vietnam before it decided on Eurocapital. Chua says he chose Eurocapital because it is one of Vietnam’s top real estate brokerage, consultancy and investment advisory company, having transacted close to US$90 million worth of properties in 2016. The other is they were willing to meet the conditions stipulated in the franchise agreement.
Before entering into property brokerage business two years ago, Eurocapital had been a property developer and developed properties like Sol Beach House in Phu Quoc as well as landed houses and condominiums in HCMC. Eurocapital has been slowly winding down its property developing arm and move into sales brokering business. They are currently marketing Keppel Land’s Empire City, City, a 14.6ha waterfront site in the upcoming Thu Thiem New Urban Area in District 2 of HCMC, which comprises residential apartments, office and retail properties, as well as an 86-storey integrated mixed-use complex.
“In ERA, we found the opportunity to bring a top global brokerage brand into Vietnam to better serve our international developers, because there are quite a number of international developers in the country such as CapitaLand, Keppel Land, GuocoLand, CFLD, Hongkong Land and Country Garden, but the quality of real estate brokering services remains low,” says Tuan Pham, COO with Eurocapital. “We think that by bringing ERA into Vietnam, we can improve the professionalism of the local agents. With ERA’s training, our agents can better serve both developers and our customers.”
ERA Vietnam is looking to have 500 associates under its wing by the end of 2017, and eventually have 3,000 associates in 25 offices across the country.