Real estate firm to recoup losses by restarting previous projects

December 18, 2017 | 21:41

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Ninh Van Bay Travel Real Estate JSC, planned to reinvest in the Ana Mandara project in the south central city of Hoi An despite the accumulated loss of VND279.5 billion ($12.3 million) in the first nine months.

During the second quarter of 2017, the firm recorded VND296 billion ($12.9 million) in loss. As a result, the insignificant earnings in the first quarter could not recoup the whopping second quarter results, leading to an accumulated loss of VND282 billion ($12.4 million) for the first half of the year.

Additionally, Ninh Van Bay mildly recovered from the negative business performance of the first six months by scoring VND62.2 billion ($2.7 million) in total revenue and VND2.4 billion ($105,360) in after-tax profit. Nonetheless, the modest earnings could not even outperform the firm’s accumulated loss from the first three quarters, which was roughly VND279.5 billion ($12.3 million).

The real estate developer has finished the civil works of the Six Senses Saigon River project

Planning to bounce back, Vu Ngoc Tu, CEO of Ninh Van Bay Travel Real Estate JSC, asserted, “We have drafted strategies to treat the current financial debt. Particularly, Ninh Van Bay has found the capital sources to resolve the firm’s bond loans of VND230 billion ($10.09 million).”

Tu also added that the real estate resort developer had decided to resurrect the Ana Mandara Hoi An project as part of the firm’s strategy to reduce the accumulated loss. Besides, the firm also started preparations to transfer ownership over two other resort projects, Six Senses Saigon River and Emerald Ninh Binh, with the aim of minimising the financial burden.

Specifically, Ana Mandara Hoi An, constructed in Con Bap Eco-Resort, Hoi An ancient town, has a total capital of $53.6 million, 43 per cent of which came from Ninh Van Bay. Due to the firm’s financial instability, the project’s implementation was postponed.

Likewise, the firm has finished the civil works of Six Senses Saigon River, which was previously invested with VND723 billion ($31.7 million) for the first stage of construction.

In addition, Emerald Ninh Binh has been in operation since 2011, securing a fairly stable source of clients.

Ninh Van Bay Travel Real Estate JSC specialises in developing and managing high-ranking travel real estate resorts in Vietnam with a corporate history of over 20 years in the hospitality industry.