Housing developer Nam Long transfers 25% stake in subsidiary Paragon Dai Phuoc

Vietnam's leading housing developer Nam Long Investment Corporation has transferred a 25% stake in its subsidiary Paragon Dai Phuoc Co., Ltd.

After the transfer, the shareholder structure of Paragon Dai Phuoc at the end of December 2022 includes: Nam Long Investment Corporation (75%), TBS Group (21.6%) and Tan Hiep Investment Co. Limited (3.4%).

The transfer value was not disclosed in the firm's release on January 1.

Paragon Dai Phuoc was established in 2018 with capital contribution from Nam Long and Japan's Nishi Nippon Railroad to invest in the Nam Long Dai Phuoc urban area, at a scale of more than 45 hectares in Dong Nai province.

By September 30, 2022, Nam Long owned 100% of this company. It currently has a charter capital of nearly VND1,678 billion ($71 million).

Previously, Nam Long had said it planned to transfer 50% of capital at the Paragon Dai Phuoc project to Nishi Nippon Railroad. The deal was expected to bring in revenue of VND1,300 billion ($55 million) and after-tax profit of VND350 billion ($14.81 million) for the company, recorded in 2022.

In the period of 2023 - 2024, Nam Long can continue selling stakes at the Izumi City project in Dong Nai province and the Waterpoint project phase 2 in Long An province.

Izumi City, an urban area project in Bien Hoa city, about 35 kilometers east of Ho Chi Minh City, is invested by Nam Long and Japan's Hankyu Hanshin. The Nam Long Waterpoint project is a residential township by the Vam Co Dong river, about 30 kilometers southwest of HCMC.

Early April, the World Bank’s financial arm IFC had proposed a $73 million investment in Nam Long to support the major affordable housing developer in a project in Greater HCMC.

In a disclosure, IFC said its latest proposed proceeds from Vietnam dong bonds will be used to finance the development of residential housing units of Nam Long’s Waterpoint project phase 2.