Sacombank sell two big real estate projects to deal with bad debts

March 12, 2019 | 20:21

(0) user say

To resolve bad debts, Sacombank has just decided to discount two real estate plots it previously put on sale by nearly VND1.812 trillion ($78.78 million).

sacombank sell two big real estate projects to deal with bad debts

Sacombank is offering huge discounts to reduce its bad debts

These are two of the four real estate plots worth VND20 trillion ($869.5 million) that were put on sale by the bank in last September. Sacombank’s decision to reduce prices has been quite a surprise.

Specifically, one of the plots is a complex of high-rise buildings and sport area located in Ho Chi Minh City’s Binh Tan district. This is a 530,000 square metre landin Binh Tan district's Binh Tri Dong B. The project is offered for VND5.36 trillion ($233 million), VND669 billion ($29 million) less than six months ago.

The second one is a 600,000sq.m residential area in the southern city of Can Tho’s Binh Thuy district, 4.5km from the city centre. Sacombank’s new price is VND3.424 trillion ($148.87 million), down VND1.143 trillion ($49.7 million) against its previous price.

Thus, the two real estate project are advertised for VND1.812 trillion ($78.78 million) less than in last September.

This is one of Sacombank’s attempts since the end of 2017 to deal with its sizable bad debts. Last year, Sacombank put numerous real estate projects worth trillions of VNDs on sale, some at golden areas of Ho Chi Minh City.

Its fourth quarter financial report stated that in 2018, Sacombank’s total bad debts were VND5.427 trillion ($235.9 million), down nearly half against the beginning of the year. The bank’s non-performing loans also reduced from 4.67 to 2.11 per cent.