The increasingly active real estate market of Ho Chi Minh city is pushing up demands in satellite city like Vung Tau city to gain growth. Restructuring message from Ba Ria- Vung Tau House Development Jsc- Hodeco ( HOSE: HDC) which was sent out by leaders in the first half of this year is implemented aggressively, reflected in performance as of 5 months of 2016.
Projects in Binh An, Binh Gia residents, Ngoc Tuoc, Phu My are accelerated in sales to gain funds for new era.
On 10/05/2016, HDC had done the ritual for roofing the Binh An apartment, 15-level project with 378 apartments. Most of HDC projects are sold well due to reasonable price. As informed by leaders, this project was sold at 40% of total apartment, equivalent to revenue of VND 110 bn and will handover to buyers as scheduled in 12/2016. Hodeco’s estimate is the rest will be sold out in the second half of the year and profit will be booked for year 2016.
In May, HDC completed the foundation for project Binh Gia Resident, the 18 levels with 317 apartments, 25% of which has deposits from early 2016. This project is expected to be handed over to buyers in the end of 2017. This project will be open for sales in the coming June together with publishing model apartments of Binh An project. The sales is expected to reach at 50%-60% of Binh Gia Resident apartments, revenue and profit will booked for year 2017 as stated when handing over apartments.
Another accelerated project is Phu My urban area which has a good sales speed, according to leaders of HDC. It is estimated that 90-100 lands after the company assigned South East Green Land Company as distributor. From early 2016 to now, it gained 30 lands with revenue of VND 32bn and estimated to reach VND 110bn from this project at the end of the year. This project has gross profit margin at 50% as the land is owned by HDC for a long time.
The strategic project Ngoc Tuoc 2 is also accelerated in finishing up the infrastructures and adding more villa lands for sales in the second half of the year. Currently, there are 3 villa lands for sales. HDC will concentrate all its efforts and resources into expensive projects such as project no.2 Truong Cong Dinh which has three sides opposite to the old office of the company. Besides, the company also builds a high class hotel Fusion Suites with 20-level scale in this area. The expected capital is VND 70bn revenue from selling project Phu My and transferring ownership of lands such as 5.1 had in Go Sao project, district 12 Ho Chi Minh city and 3,400 m2 land in Thi Sach street, Vung Tau city this year.
In order to secure funds for strategic projects Fusion Suites, Hodeco Sea Village… HDC is preparing plan of issuing VND 200bn inconvertible bond with term of 3-5 years via reliable consulting firm. It is expected starting in coming 3rd quarter.
In short term, high sales from 3 projects Binh Gia, Binh An and Phu My will help HDC’s leaders to overachieve profit plan declared in shareholder’s annual meeting this year. This may be results from Hodeco’s strong restructuring, the longer target lies in projects Fusion Suites Hotel, villas area and resort hotel Hodeco Sea Village… which will be carried out this year.
Translated from: vietstock.vn
