Major developer Phat Dat acquires first land plot after 2 years

Phat Dat Real Estate Development JSC will buy a plot of land in District 3, Ho Chi Minh City for no more than VND650 billion ($25.5 million), its first land purchase since the country's bond debt crisis in late 2022.

In its newly-released resolution, the board of directors has authorized its chairman Nguyen Van Dat to negotiate and make a final decision on the acquisition of this asset, located at 61 Cao Thang street, Ward 3.

Since late 2022, the company has paused land acquisition activities to focus on improving its financial situation through the sale of assets such as Phat Dat Industrial Park Investment and Development JSC, Hoa Binh Real Estate JSC, and BIDICI Real Estate Investment JSC.

The company reported that it had disbursed a total of VND1.23 trillion ($48.3 million) from the sale of over 134 million shares in June for five projects, including the Nhon Hoi ecotourism urban area and the Bac Ha Thanh urban area in the south-central province of Binh Dinh; a high-end commercial service hotel center and the Thuan An 1 & 2 high-rise mixed-use residential complex in the southern province of Binh Duong.

According to Dat, from now until 2027, the company will implement at least six projects, including the Quy Nhon Iconic project covering 41.16 hectares in the Bac Ha Thanh urban area; the Ngo May Quy Nhon commercial and service complex (Q1 Tower), with a total area of 5.47 hectares; the Thuan An 1 & 2 high-rise mixed-use residential complex (4.46 hectares); the 21.21-hectare Poulo Condor resort complex in Con Dao, Ba Ria-Vung Tau province; the 7.62-hectare Nhu Nguyet commercial service complex in Danang city; and the 19.45-hectare Serenity Phuoc Hai resort complex in Ba Ria-Vung Tau province.

These projects are expected to bring Phat Dat an estimated revenue of up to VND50 trillion ($1.96 billion).

Regarding business performance, due to legal delays in project progress, for the first nine months of this year, the real estate company reported revenue of VND173 billion ($6.8 million), down 68% year-on-year. Its profit after tax was VND153.6 billion ($6.03 million), down 62% compared to the same period last year and fulfilling only 17.5% of the year's target.

Phat Dat's ambitious profit plan for this year was based on the Quy Nhon Iconic project, which was slated for sale in May and June. However, the project's progress was slower than expected, and it was not until September 25 that the company received approval for land prices for phase 1, covering 21.3 hectares.

On December 19, the company announced that it had received notification from Binh Dinh’s tax authority regarding the land use fees for the entire assigned land area.

According to Phat Dat, this is the first project in Quy Nhon to complete the land use fee calculation under the new land law, which took effect on August 1, 2024. At a sales event on December 3, all 181 available units were sold out. With a fast payment method for all customers, Phat Dat expects to record over VND1 trillion ($39.3 million) in revenue from this project in the fourth quarter of this year.

Phat Dat is listed on the Ho Chi Minh Stock Exchange as PDR, which closed Friday at VND21,000 ($0.82) per share.