Transaction to put VND1.218 trillion ($58 billion) into Sudico's coffers.
The SongDa Urban & Industrial Zone Investment and Development Joint Stock Company (Sudico) have signed an agreement on selling land use and technical infrastructure at the South An Khanh project with the Techcomdeveloper Project Development Joint Stock Company (Techcomdeveloper).
The 89,020 square meter area will be sold for VND1.218 trillion ($58 billion) excluding value added tax, stamp duty, and fees for issuing land certificates. Within 15 days of signing the agreement Sudico will receive VND1.119 trillion ($53.285 billion), which includes the total value added tax. Within five days of receiving this first payment it must assign the area to Techcomdeveloper, and the remaining payment will be then transferred as requested by Sudico.
The transaction will enhance Sudico’s financial resources to resolve some immediate problems, but the buy back agreement featured an article that provides Sudico with the right to own the area again after three years, according to a representative from Sudico.
South An Khanh New Urban Area is located in the west of Hanoi. The project covers an area of 288.8 ha, including 15.3 ha planned for social purposes that deliver to farmers whose land has been reclaimed. The total area for new urban areas is 189.7 ha. This is one of Sudico’s key projects in recent years.
According to consolidated financial statements for the first nine months of 2014, its net profit reached VND27.5 billion ($1.27 million), falling approximately 19 per cent compared with the first nine months of 2013 and representing only one-fifth of the annual target of VND130 billion ($6.2 billion) set by a general meeting of shareholders.