Vietnamese real estate developers have been increasingly calling for foreign investment in their apartment projects as the domestic property market has warmed up after many years.
Discussing plans to increase chartered capital is part of the agenda of many real estate firms’ shareholder meetings.
FLC board of directors, for example, plans to ask for shareholders’ permission to issue 465 million shares to raise its chartered capital from VND3.749 trillion to VND8.398 trillion.
Several days ago, a roadshow was organized to call for capital for many large-scale projects the group plans to implement, including FLC Sam Son ecological urban area and the Khanh Hoa provincial administration area.
Earlier this year, Phat Dat Company convened a shareholders’ meeting to discuss the issuance of 65.1 million shares in the second quarter of the year to raise its chartered capital from VND1.302 trillion to VND2.018 trillion.
Meanwhile, unlisted firms are joining forces with their foreign partners to strengthen their financial capability.
In early February, Son Kim Land signed an agreement with the South Korean Hamon Group on the establishment of a joint venture in charge of developing a real estate project in HCM City.
Under the agreement, the two sides would cooperate to develop the $100 million Gateway Thao Dien project in district 2.
Nguyen Hoang Tuan, Chair of Son Kim Land, declined to provide information about the capital contribution ratios of the two parties, but said there is not a big gap in capital contributed to the joint venture by the two parties.
Meanwhile, Nam Long has revealed it would cooperate with Japanese Hankyu Reality and Nippon Railroad to develop Flora Anh Dao project in district 9.
Analysts noted that the recovery of the Vietnamese real estate market has lured foreign investors back.
However, a finance expert warned that the rush by real estate firms to mobilize capital through the stock market may cause problems.
He said the sharp capital increase within a short time may pose high risks to businesses and their shareholders because corporate governance cannot be improved quickly.
Nguyen Xuan Quang, Chair of Nam Long Group, a listed real estate firm, said that he not only raises funds through share issuance, but also seeks capital from the public for specific projects.
Quang noted that he can see more advantages in the latter solution, because this not only helps him seek capital at low costs, but also can help him take full advantage of his partners’ experience in project management.
Đăng ký: VietNam News