Sudico scales up restructuring efforts

This came on the back of the firm’s comprehensive shake-up measures last year, including reducing management from nine deputy general directors to only four and total headcount from more than 950 to around 600.

The firm’s finances were strengthened after it basically resolved matured bank loans and rescheduled other debts.

To bolster operational efficiency the firm dissolved or merged ineffective member units and focused on core projects.

At its recent general shareholder meeting, the firm’s management expressed its commitment to concentrating resources on major property projects with high salability such as Nam An Khanh and reviewing other projects on that basis to produce suitable decisions that ensure investment efficiency.

In respect to its core projects, Nam An Khanh new urban area in Hanoi’s suburban Hoai Duc district is the company’s top priority this year to which Sudico will apply both wholesale and retail sales methods.

In respect to the Van La-Van Khe residential area, which was once suspended as it conflicted with Hanoi general planning, Sudico chairman Ho Sy Hung said, “The project was approved but selling in the near-term will surely face difficulties due to still low liquidity. Therefore the board of directors has assigned the general director to work with Hanoi authorities to revise the project’s planning to correlate with the market at this time – shifting from high-end property to medium to boost sales.”

On the project’s goals for this year Hung said, “In 2014 the project will strive for approval of its 1/500 scale plan, further build technical infrastructure, develop key project items and complete the investment procedures for living block projects.”

In respect to its Hoa Hai new urban project in Danang, the company’s deputy general director Do Van Binh said Sudico planned to sell the project last year to recoup capital but had not yet found an appropriate buyer due to low offers.

“It is difficult to find similar projects to invest in at this time, so the management has decided not to sell it but rather source potential partners for joint implementation,” Binh said.

Regarding the Tien Xuan urban project, Sudico’s largest in scope and located in Hanoi’s Quoc Oai district, this year the company will work with authorities to establish zone planning, revise the detailed plan to match general planning and select the best investment options for the parts of the property that have already successfully seen site clearance.

In respect to the Sudico-SPM housing development project in Ho Chi Minh City’s district 9, Sudico is actively sourcing partners and will consider divesting if the project does not soon improve.