Frasers Property recorded a revenue of S$9 million ($6.79 million) from Vietnam operations in October 2022-March 2023 for the first half of the fiscal year 2023, down 82% year-on-year.
Its profit before interest and tax dropped by S$17 million ($12.82 million) to S$1 million in the period, the Singapore-based real estate business announced on Thursday.
The business attributed the results to the absence of contributions from the sale of residential units in the Q2 Thao Dien apartment site in Ho Chi Minh City, which was settled in the fiscal year 2022.
For its industrial portfolio, in half one of the fiscal year 2023, Frasers entered a local joint venture with a Vietnamese partner, securing 776,000 square meters of industrial and logistics land in northern Vietnam. The cooperation will add 460,000 square meters of international-grade ready-built factories and warehouses from FY 2023 to FY 2027. A total development value of S$320.5 million ($241.77 million) is expected for about 460,000 square meters of facilities, which are slated for handover in FY 2023-FY2027.
Its Binh Duong Industrial Park in the southern province of Binh Duong is set to commence its phase 2 development in half two of FY 2023. The facility covers 588,442 square meters of industrial land, of which over 200,000 square meters of facilities worth S$180 million ($135.78 million) are expected to be delivered by FY 2025.
Regarding commercial portfolio, Worc@Q2, a modern-styled serviced-office tower in HCMC, achieved 78.5% occupancy rate on March 31, 2023, targeting 90% within FY 2023. Meling Point, a grade-A office building in HCMC, had its occupancy rate stable at 90%.
In February, Frasers Property Vietnam opened an office in Hanoi, its second in Vietnam, to strengthen its footprint in the Southeast Asian country. The new office in Hanoi signifies Frasers Property’s commitment to Vietnam’s economic development and growth, underscoring the confidence it has in the long-term growth potential across the northern region.
Overall, in Vietnam, Frasers now manages commercial real estate of 22,500 square meters; industrial real estate of 1.36 million square meters, of which 680,000 square meters are under development; and residential real estate of 333 apartment units, 13 shop-lots units, and 18 landed units.