TTC Land (SCR) plans to spend up to 330 billion VND to acquire a 20% share of a real estate company in Dong Nai.

TTC Land will receive 14 million shares, representing 20% of the charter capital in Phuoc Tan Trading and Construction Joint Stock Company.

The Board of Directors of Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land - Code: SCR) has approved a resolution regarding of receipt the transferring shares in Phuoc Tan Trading and Construction JSC.

TTC Land will receive 14 million shares, representing 20% of the charter capital in Phuoc Tan Construction and Trading Joint Stock Company, with a maximum transfer value of 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 core business of Phuoc Tan Trading and Construction Joint Stock Company is constructing residential houses. The company was founded in August 2009, with headquarters in Bien Hoa, Dong Nai province.

Phuoc Tan Trading and Construction Joint Stock Company's charter capital was upgraded from VND 400 billion to VND 700 billion in April 2021.

Regarding Phuoc Tan's shareholder structure, as disclosed on May 15, 2017, Mr. Le Van Kiem's Long Thanh Golf Business and Investment Joint Stock Company own 49 %, while the company's employees own 1 %. Tin Nghia One Member Limited Liability Company owns 30% of the capital, with the remaining 10% owned by Tin Nghia’s employees.

In the 2021 Annual General Meeting of Shareholders, TTC Land's Board of Management stated that the majority of the enterprise's land fund is situated in Ho Chi Minh City, Da Nang, and Lam Dong. And according to the 2021-2025 strategy, the company would seek M&A land funds with a scale from 5 to 15 hectares, mostly in Ho Chi Minh City, Dong Nai, Long An, and Phu Quoc.

The company shared that it 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, Thanh Thanh Cong Industrial Real Estate Corporation, a TTC Land member, won an auction of 5 land lots totaling 293,749 m2 in Song Than Industrial Park (178 ha) for over VND 2,000 billion VND bringing the total warehouse land fund for lease to more than 500,000 m2.

From the beginning of the year until now, TTC Land and its member companies have cooperated and developed a totally new land fund of about 320 hectares.

Furthermore, TTC Land generated more than VND 1,574 billion in net revenue and approximately VND 190 billion in profit after tax in the first nine months of the year, which was 4.5 times and 2 times greater than the same period last year.

In the third quarter alone, the company's net revenue reached more than VND 375, up more than three times over the same period, owing primarily to the handover and continuous record of 100 apartments in the Carillon 7 project.

As of September 30, 2021, the company's total assets declined by 8% to more than VND 10,464 billion, in which inventories fell by about 13% year on year to nearly VND 2,892 billion, owing mostly to ongoing construction at Jamona City, Charmington Dragonic, Charmington Tamashi Da Nang, Carillon 7, Jamona Cau Tre projects.

Source: VietnamBiz