Danang’s largest domestic investor puts $180 mln into real estate

Danang’s largest domestic investor puts $180 mln into real estate


A private trading company has signed an initial agreement to pour US$180 million into two real estate projects in Danang city on Vietnam’s central coast.
Under the deal signed earlier this week with the city government, Hoang Anh Gia Lai Corp. plans to invest $150 million to build a waterfront hotel-apartment-office-shopping-complex along the Han River in Hai Chau district.

Work on building the complex is scheduled to start early next year and finish in 2010.

The corporation, headquartered in the Central Highlands province of Gia Lai, will also build an estimated $30 million worth of high-end apartments for sale in Thanh Khe district.

Doan Nguyen Duc, chairman of the corporation, urged the city authorities to speed up site clearance to deliver land to the investor for the construction soon.


Additionally, the company is set to begin work on a $25 million resort project in Ngu Hanh Son District in August.

With the fresh investment, Hoang Anh has become the largest domestic investor in Danang with a total of $250 million at work in the city’s property and tourism projects.

Other plans

Hoang Anh – involved in a range of businesses from property to wood processing and tourism – plans to pour trillions of dong into high-end offices, hotels and apartment projects in Vietnam and abroad over the next four years.

The company has plans to open a 4,000-apartment project near the Phu My Hung urban area in South Saigon this year while striving to become a high-end and mid-range apartment leader by 2012 when it hopes to have 15,000 apartments completed.

Hoang Anh has branched out to electricity sector with $90 million invested in the construction of four hydroelectricity plants in the province.

The corporation, with a chartered capital of VND1.04 trillion (US$65 million), aims to list on the domestic stock exchange in the second quarter of 2008.

The group will invest $20 million or more in developing 10,000ha of rubber trees in Laos and 5,000ha more in Vietnam from now until 2012.

There are also plans to merge affiliates Hoang Anh Quy Nhon, Hoang Anh Saigon and Hoang Anh Housing Company into the conglomerate to increase financial capacity.

French investment fund Jaccar and two local biggies - Saigon Securities Inc. and Saigon Commercial Joint Stock Bank - now held 20 percent of the group’s total shares.

Last year, Hoang Anh posted revenue of VND289 billion ($18 million) and after-tax profits of VND50.5 billion ($3.1 million), predicting an expected VND813 billion ($51 million) in revenue and VND158 billion ($10 million) profits this year.

Source: Thanh Nien, VietNamNet – Compiled by Dong Ha