Dat Xanh acquires new projects, restructures operations

Green City Project

The Ho Chi Minh City-based company will sell its holdings in two subsidiaries, Dat Xanh Binh Duong (57 per cent) and Mekong Delta Real Estate (51 per cent), at prices at least par with book value.

The move is part of a plan to turn different Dat Xanh Group brokers across the country into four regional brokerage firms – Dat Xanh South, North, Central Region, and South East. The group will hold 51 per cent of each South, North and South East, and 55 per cent in Central Region.

The value of the deals is less important than the main purpose of streamlining the subsidiaries system, said Viet Capital Securities Co. specialist Nguyen Ngoc Hoang Hai.

Dat Xanh has decided to take over the 7.4-hectare Green City residential project in Ho Chi Minh City’s District 9 from the previous developer for VND800 billion (around $38 million).

Green City will be Dat Xanh’s largest project in the city in terms of area, making its 3.6ha Sunview Town project the second. Green City is located near Hanoi Highway and is close to one of the stations for the city’s under-construction Metro Line No.1, which will run from District 1 to District 9. The railway is expected to start operations in 2018.

The project, a combination of mid-class apartments and villas, will cost around VND1 trillion ($47.62 million). Of this total, 20 per cent will come from loans and the balance from the group’s own capital. Dat Xanh will offer additional shares to help finance the project.