Hoa Phat Group expands real estate investment by proposing to invest in two commercial and service urban projects in Can Tho City.
Hoa Phat Group’s headquarters on Nguyen Du street, Hanoi. (Photo: Song Ngoc).
On April 13 this year, Hoa Phat Group (Code: HPG) issued a written proposal to invest in a number of projects in Can Tho City.
On May 6, the Chairman of the City People’s Committee issued a letter approving Hoa Phat’s survey, study and proposal for two projects in Cai Rang and Ninh Kieu districts, namely.
* Commercial and service urban area with a scale of 88.2 hectares in Phu Thu ward, Cai Rang district, including 58.2 hectares of housing and a 30-hectare exhibition center.
* Commercial – service urban area with a size of 6.24 ha at Le Loi and Tran Van Kheo streets in Cai Khe ward, Ninh Kieu district.
Time of survey and research is 6 months from May 6, 2021. All costs related to the survey and research are covered by Hoa Phat Group. During the research and survey process, Hoa Phat is not allowed to affect the lives of people in the surveyed area.
Chairman of the City People’s Committee Tran Viet Truong assigned the Department of Planning and Investment, the Department of Construction, the Department of Natural Resources and Environment, the People’s Committee of Ninh Kieu District, and the People’s Committee of Cai Rang District to support, provide information, and facilitate convenient for Hoa Phat to survey, research and propose the above-mentioned projects in accordance with the provisions of law.
Real estate segment is still modest in Hoa Phat’s operations
By the end of 2020, Hoa Phat Group restructured its organizational model with 4 industry groups under 4 specialized corporations, including: Iron and Steel Corporation (using raw materials to make iron and steel), Corporation steel products (for downstream steel products such as galvanized steel sheets, steel pipes, containers, refrigeration, …), Agriculture Corporation (pig, poultry, animal feed production, …) and Real Estate Company.
Hoa Phat Real Estate Corporation was established on December 8, 2020 with a charter capital of VND 2,000 billion, managing all investment, construction, real estate and ancillary activities.
Currently, this corporation has three subsidiaries, namely Hoa Phat Construction & Urban Development Joint Stock Company, Hoa Phat Hanoi Real Estate JSC and Hoa Phat Saigon Real Estate JSC.
The two main real estate sectors that Hoa Phat invests in are industrial zones (IPs) and urban areas. Currently, Hoa Phat is investing in the exploitation of technical infrastructure in 3 industrial zones, including: Pho Noi A Industrial Park (600 ha) and Yen My II Industrial Park (phase 1, with an area of 97.5ha), both in Hung Yen; Hoa Mac Industrial Park (131 ha) in Ha Nam.
Hoa Phat said that Hoa Mac Industrial Park has increased its occupancy rate to 75% of the total area, while Pho Noi A Industrial Park, Yen My II has reached 100% of the area invested in technical infrastructure.
Therefore, Pho Noi A Industrial Park is implementing investment procedures to expand to the East, Yen My II Industrial Park will also be expanded in phase 2 by more than 200 hectares. It is expected that the IPs will complete the investment in extension infrastructure to be able to lease land from 2021.
Hoa Phat aims to accelerate the development of residential real estate projects, focusing on high liquidity markets such as Hanoi, Da Nang, and Ho Chi Minh City. It is expected that, in 2021, Hoa Phat will carry out M&A with one or two projects in these markets.
Real estate contributes 6% of Hoa Phat’s profit after tax in 2020.
In 2020, the real estate segment will contribute 4% of Hoa Phat’s consolidated revenue and 6% of profit after tax. The Group wants to continue diversifying its business activities, increasing the proportion of revenue and profitability of non-steel segments.
Source: vietnambiz.vn – Translated by fintel.vn