Phu Long Real Estate Company took over Posco E&C (South Korea) to become a 50% shareholder of An Khanh Joint Venture, the investor of the Splendora urban project.The project’s remaining half still belongs to Vinaconex, said Nguyen Duc Chi, Chairman of State Capital Investment Corporation (SCIC), at a press briefing on January 17. The head of SCIC called the successful withdrawal and transfer to Phu Long (a member of Sovico Group) a "success" in restructuring Vinaconex.
Savico Group gobbles up Pocso for share in Splendora urban project
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Phu Long is developing a wide range of housing projects in Ho Chi Minh City, such as Dragon City, Dragon Riverside City, Dragon Village, and a number of associated projects, such as HDBank Tower and Sovico Phu Quoc.
Previously, Phu Long made two consecutive capital increases in December 2017 from US$31 million to US$88 million, then to US$132 million.
An Khanh Joint Venture is the project developer of Bac An Khanh New Urban Area (widely known as Splendora), where Vinaconex and Posco E&C now each own 50% of the charter capital.
This investment project will build a high-grade urban area with offices and commercial centers in the west of Hanoi, running along Thang Long Avenue.
With a total area of 245 hectares, the project has been divided into 5 phases and was kicked off in 2008.
The project will have 6,440 apartments, 1,311 villas and adjacent houses with the total capital of over US$ 2 billion, according to the initial plan.
The project has been stagnant for nearly 5 years due to a disagreement between the two partners and the slowdown of the market after the first phase was completed in 2013. Recently, the two parties have settled the dispute started Lakeside Splendora Villas on an area of 4.7 hectares.
Divesting the joint venture has been on Vinaconex's agenda for many years.
Recently, at the privatization roadshow, Vinaconex’s leader said the Splendora project is likely to bring about a revenue of about US$53 million in 2018 and profit of about US$19 million; after deducting expenses, Vinaconex is likely to gain a profit of about US$8.8 million.
According to the corporations’ plans, the project will generate about US$88 million in revenue and US$22 million in profit by 2020.
