Sudico forges ahead with project ambitions

The outlook is positive for Sudico this year with a number of key projects getting underway

Phan Ngoc Diep, chairman of the company’s management board, said the project had suffered setbacks last year because the developer needed to wait for the Hanoi People’s Committee to approve aspects of the project design.

The development is located in former Ha Tay province. After the province was merged into Hanoi two years ago, a range of property projects the area have been re-considered by the Hanoi People’s Committee for whether they are in line with the development of a greater capital city.

As the municipal authorities were still scrutinizing the adjustments to the detailed masterplan of the project, Sudico was not able to continue selling land last year. Diep said the Ministry of Construction had agreed with the company’s adjustments and he expected the Hanoi authorities would soon approve the revised masterplan.

In 2008 and 2009, Sudico sold parcels of land in this projects, earning $45.8 million in revenue.

“This year we will focus on land clearance and compensation, as well as completing at least 60 per cent of the infrastructure system for the first phase and starting the second phase,” Diep said.

Diep predicted that the first land plot could be sold at the end of this June, with prices estimated to be from VND25 to VND28 million ($1,200 to $1,352) per square metre.

According to company’s report, sales of accommodation in the project would contribute around VND2,200 billion ($106 million) to the company’s revenue this year, accounting for 62 per cent of total revenue.

The 350 hectare Nam An Khanh new urban area is located on Thang Long Avenue in An Khanh commune of Hoai Duc district, which is on the outskirts of Hanoi. The development comprises villas, terraces, apartments, offices, a trading centre, a supermarket, an entertainment centre and other public facilities.

Sudico is now initiating a range of other urban development projects.

This year, the company will sign off on preparation procedures for Van La-Van Khe, a new urban project on Hanoi’s outskirts.

Meanwhile the new Tien Xuan urban area, also on the fringes of Hanoi will see land clearance and compensation get underway. The company plans to clear around 100ha of a total of more than 1,000ha for this project this year.

Other projects to be kick-started in 2011 are Pho Noi-Hung Yen new township in Hung Yen province and Cactus Cam Ranh Resort & Spa in the central province of Khanh Hoa.

This year, Sudico wants to increase its legal capital to VND1,500 billion ($72.4 billion), against VND1,000 billion ($48 million) currently.