VinGroup firms on real estate projects, sets high business target

HA NOI (Homeid) – Property developer VinGroup (VIC) showed its commitment to delivering 8,000 apartments in the Royal City and Times City projects in Ha Noi this year despite low demand given prolonged bear market.

 

The company sets a target to earn a pre-tax profit of around US$476 million this year

at the annual shareholders' meeting in Ha Noi. — vnexpress photo

 

At the company's annual shareholders' meeting on Saturday, VinGroup chairman Pham Nhat Vuong said VinGroup would not reduce prices of their apartments like other companies did but to keep the old prices to protect interests of the customers who had earlier purchased their apartments.

"There're many ways to raise capital given difficult conditions, so dumping apartment prices when the market is in the downturn can affect other clients' interests," Vuong said.

The Times City project has completed the first phase with 12 towers, nine of which have been sold while other three are still not open for sale.

VinGroup also plans to launch its two major shopping malls in Ha Noi this year, Vincom Mega Mall Royal City in July and Vincom Mega Mall City Times in December, while seeking new promising projects in Ha Noi, HCM City, Nha Trang and other localities for investments.

"Many opportunities will bestow on cash holders in the current context," Vuong said.

Last year, VIC's net revenue reached over VND7.9 trillion ($376.2 million), an increase of 242 per cent over the previous year. Its after-tax profit also jumped 72 per cent over 2011, totalling nearly VND1.85 trillion ($88.1 million).

In the financial sector, VinGroup successfully issued international convertible bonds worth $300 million while attracting another $200 million from the global private equity fund Warburg Pincus into Vincom Retail.

This year, VIC projects to earn a pre-tax profit of around VND10 trillion ($476.2 million) and brings its net revenue to VND12.2 trillion ($581 million). The group has also approved a plan of debuting shares overseas through an initial public offering on an international stock exchange in the future.

Two foreigners were elected to the VIC's board of directors through this meeting. They were Joseph Raymond Gagnon, managing director at Warburg Pincus, and Marc Villers Townsend, managing director at CBRE Vietnam, an independent board member.

VIC shares rose slightly today, closing at VND70,000 (US$3.33) a share. – VNS

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