Hoa Binh Corporation picks up contract for Imperia Sky Garden project in Hanoi.
The Hoa Binh Construction and Real Estate Corporation (HBC) secured an Engineering Procurement and Construction (EPC) contract on June 29 worth VND2.5 trillion ($112 million) for Imperia Sky Garden, a high-end apartment project in Hanoi.
As the general design and build contractor, HBC will complete the design, supply the equipment and facilities, and construct all the commercial, service and housing areas of the building. The HBI Joint Stock Company is the investor and the M.I.K Group Vietnam the developer.
Located in Minh Khai Street in Hai Ba Trung district, the project covers an area of 3 ha with four buildings of 28 floors. It is expected to be completed within 23 months.
Imperia Sky Garden is the second project where HBC has cooperated with HBI and M.I.K Group Vietnam, after Imperia Garden Hanoi, which is under construction and expected to be completed by May next year.
In 2015 HBC’s consolidated revenue was VND 5.078 trillion ($227.6 million), a 44.3 per cent increase against 2014 and reaching about 96 per cent of the target. Construction made the greatest contribution, of 99 per cent.
After-tax profit was VND 83.47 billion ($3.7 million), however, down 17.7 per cent compared to 2014 and equal to just 46.4 per cent of the target. Reasons behind the failure to reach the target include high borrowings from banks creating high financial costs, investing long-term in construction with complex technology bearing risks in costs, and the general difficulties in the real estate market.
CEO Le Viet Hai stressed that their investment extends for decades and is not short term.
For 2016 HBC targets revenue of VND7.2 trillion ($322.7 million) and after-tax profit of VND252 billion ($11.29 million), increases of 42 per cent and 200 per cent, respectively, compared to 2015. This year it has dozens of contracts with major partners such as Vingroup, Novaland, SunGroup, Hoa Lam, REE, and M.I.K, valued at VND15.2 trillion ($681.4 million), giving its Board of Directors reason to believe targets will be met.
Established in 1987, HBC is the only company in the southern region selected by the government to participate in the national brand program. It has 6,000 employees and has completed 80 buildings around the country and is finishing another 50.