In expanding the land fund, TTC Land (SCR) wishes to acquire 20% capital of Phuoc Tan Construction and Trading JSC

Saigon Thuong Tin Real Estate (TTC Land; HOSE: SCR) has recently issued a resolution approving the receipt transfer of 14 million shares (20% of Phuoc Tan Construction and Trading Joint Stock Company's charter capital).

The maximum transfer value is VND 330 billion. The Vice-Chairman of the Company's Board of Directors has been authorized to sign the contents and issues related to this transaction.

The approval of holding 20% of Phuoc Tan Construction and Trading Joint Stock Company’s shares has reinforced the M&A strategy to develop TTC Land's land fund.

At the 2021 Annual General Meeting of Shareholders, TTC Land's leaders said: "We are developing land fund in Dong Nai, Long An, etc. Because TTC Land understands intensively the emerging resort real estate market in Phu Quoc, therefore, we will develop land funds in this area instead of only focusing on the land fund in Ho Chi Minh City like before, which is now very limited. If nothing changes, according to the 5-year strategy TTC Land will M&A publicly the company owning 300 hectares of land in Phu Quoc, which is under TTC Group", the company representative added.

According to SCR leaders, in addition to existing projects, the company will continue to look for projects in satellite urban areas surrounding Ho Chi Minh City such as Dong Nai and Long An, where there is consistent infrastructure investment. The company will also prioritize a clean land fund with transparent legality and a short implementation time for mergers and acquisitions.

Previously, at the end of October 2021, Thanh Thanh Cong Industrial Real Estate Corporation, a member of TTC Land also successfully auctioned 5 land lots with a total area of 293,749m2 owned by Sacombank in Song Than Tri Industrial Park at the value of nearly VND 2,000 billion, bringing the total warehouse land fund for lease to more than 500,000 m2. These land lots belong to Song Than Industrial Park with a scale of 178 hectares in Binh Duong province, which has a very favorable location in the area.

TTC Land's SCR, which has doubled since the beginning of 2021 and is currently trading at over 19,000 VND/share, has also risen significantly in the market, alongside real estate companies.

The company's consolidated net revenue for the first nine months of this year was VND 1,574 billion, up 4.5 times over the same period last year and about 5% higher than the whole-year target of VND 1,502 billion. After deducting expenses, pre-tax profit reached about VND 233 billion, almost tripling over the prior period and exceeding the whole year's plan.

The company continued to record and hand over the remaining 189 apartments of the Carillon 7 project, as well as the liquidation of the assets that were not in line with the company's development strategy, resulting in a 9-month increase in revenue and profit.

SCR's total assets as of September 30, 2021, were VND 10,464 billion. The value of the stock rose to 5,031 billion VND. At the end of Q3, the total loan balance was VND 2,136 billion, decreasing VND 650 billion compared to the beginning of the year.

Source: Investment News