EXS Capital, the alternative investment group with a focus on Asia, has agreed to make a multi-million dollar investment into a Vietnamese real estate developer, signalling that market appetite for local investments may already be returning.

The investment involves $37 million into Son Kim Land, an up-and-coming realty firm with a pipeline of development projects. Over the past years, foreign investors have shied away from Vietnam because of low liquidity, high interest rates and high inflation. This deal could indicate that the atmosphere is changing.

The decision to go with Son Kim Land came after interviewing 27 real estate developers, said EXS in a statement. The company is the real estate arm of Son Kim Group, the retail firm with some 400 stores across Vietnam. Its forthcoming projects include two large-scale mixed use developments in Ho Chi Minh and a high-end residential building that is slated to become one of the most luxurious properties in the city. 

EXS Capital also said that it is considering bringing its investment up to $50 million, with further potential to go as high as $80 million.

"Asian high net worth investors are increasingly preferring direct deals rather than investing in a blind pool fund," said Eric Solberg, founder partner and chief executive of EXS. 

EXS Capital was established in 2007 and since then has originated and executed transactions representing almost $1.3 billion in total assets.