14:16 (GMT +7) - Wednesday 21/03/2018


Novaland sets business targets for 2017

Released at: 15:42, 26/04/2017

Novaland sets business targets for 2017

Photo: Viet Tuan

Developer to finish another M&A deal shortly in order to acquire a major project in Da Nang.

by Hong Nhung

The Nova Real Estate Corporation (Novaland), one of the leading property developers in Vietnam, is anticipating revenue of around VND17.528 trillion ($771 million) this year, with after-tax profit of nearly VND3.144 trillion ($140 million), and will increase its owner’s equity to about VND14 trillion ($616 million).

According to Mr. Phan Le Hoa, Novaland’s Director of Capital Markets and Investor Relations, as at the first quarter of 2017 it has more than 40 projects of various kinds, including shop houses, condotels, office-tels, and commercial space, etc. Nine projects have been completed on schedule and handed over to buyers.

This year is also plans to continue delivering more than ten more projects in Ho Chi Minh City, including Lakeview City, The Treasure, Rivergate, Orchard Garden, and Garden Gate.

Regarding its business operations, Novaland saw positive business activities in the first quarter fetch net revenue of up to $84 million and after-tax profit of $18 million, an increase of 164 per cent compared year-on-year.

“Novaland’s leaders will continue increasing our land reserves this year from M&A activities in key locations in Ho Chi Minh City and other high-potential cities such as Can Tho and Da Nang,” Mr. Hoa said. “The company now has a land reserve of more than 10 million sq m of construction floor to be developed in the next five years.”

Novaland has also just announced that it acquired 99.99 per cent of the Gia Duc Real Estate Company at a price of more than VND1.939 trillion ($85 million). With the acquisition, it will be the owner of the 181-ha The Sunrise Bay in the central city of Da Nang.

Novaland is now finishing legal procedures to officially become the owner of the project. With sufficient capital and technology in real estate development, it has been participating directly in management, inspection, and operations in all phases of the project.

The Sunrise Bay is developed in line with the format of Marine Bay Sands in Singapore, with leading global designers such as Moshe Safdie and Aedas. It will be an international-standard urban resort and entertainment and trading complex when it comes into operation.

Established in 1992, Novaland has now become one of the leading real estate developers in Vietnam. The company sold more than 8,000 property units in 2016, up 13.3 per cent against 2015, and accounting for 23 per cent of Ho Chi Minh City’s property market.

According to an audited report for 2016, Novaland recorded net revenue of $324 million, up 10.3 per cent compared to the previous year. Total assets set a record of more than $1.6 billion, an increase of 37.5 per cent. After-tax profit reached $73 million, rising 276.1 per cent year-on-year.

Officially listed on the Ho Chi Minh City Stock Exchange (HoSE) in December 2016, Novaland’s market capitalization is now nearly $2 billion and it is among the Top 10 largest capitalized stocks on the market and been most attractive among foreign investors.

Since December 2017, it shares have been officially included on MSCI Global Standard Indexes and entered the MVIS Vietnam Index in March 2017.

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