A large real estate deal by an international investment house suggests Vietnam's economic promise is catching attention.

Gaw Capital Partners, a Hong Kong-based property investment firm, announced yesterday that the new fund it oversees has bought a portfolio of Vietnam real estate holdings for $106 million, encompassing properties across the Asian country.

The portfolio is made up of four of the remaining projects originally held under Indochina Land Holdings 2 Ltd. The properties include those at Indochina Plaza in Hanoi, Hyatt Regency Danang and two additional land development projects in Danang and Ho Chi Minh City.

The transaction was completed via a specially created fund (Gaw NP Capital Vietnam Fund 1, LP), which will also target development projects. NP Capital, based in Ho Chi Minh City, is the local joint venture partner in the fund. The founder of NP Capital is the deputy general director of Tien Phuoc Group.

Gaw Capital Partners said the deal represents a significant step, as this is the debut of its fund management services in the Vietnam market.

"This is a groundbreaking transaction that involves multiple asset classes in different cities and an innovative capital structure - the first time for the Vietnam market. We are grateful to have the close cooperation and support of our investors, our local partner and the seller to complete it successfully,” Felix Lai, investment director at Gaw Capital Partners, said.

The Vietnam market has benefited from increasing foreign direct investment and industrial development, Gaw Capital Partners said. It noted that Vietnam is the world’s 13th largest country by population, with banks such as UBS and Goldman Sachs singling it out as full of market potential.