Phat Dat Real Estate shares hit ceiling after tie-up with Lotte on mega project in HCMC

Shares of Phat Dat Real Estate Development Corporation (HoSE: PDR) rose to the daily limit on Tuesday after the company announced a cooperation agreement with Lotte Properties HCM to pursue the VND50 trillion ($1.9 billion) Thu Thiem Eco Smart City project in Ho Chi Minh City.

On Tuesday morning, Phat Dat and Lotte Properties HCM signed an MoU to promote strategic cooperation at the Thu Thiem Eco Smart City project in the Thu Thiem New Urban Area.

According to Phat Dat, the project is planned as a large-scale mixed-use urban complex integrating shopping malls, offices, hotels, high-end apartments and smart urban utilities.

At the company’s annual shareholders’ meeting in April, chairman Nguyen Van Dat said Phat Dat was among the candidates to become a strategic investor for the project, with a targeted ownership stake of about 35%.

If the company acquires a 35% stake, its preliminary capital commitment could reach roughly VND17.5 trillion ($664.16 million), equivalent to around 66% of its consolidated assets as of the end of Q1/2026, which stood at approximately VND26.6 trillion.

Phat Dat recently announced plans to seek shareholder approval through written consultation for investments in projects valued at between 35% and 50% of total assets based on its latest financial statements. The record date is June 1, while the consultation process is expected to take place in June.

The cooperation announcement and expectations surrounding the Thu Thiem project triggered strong buying interest in PDR shares. By the end of the Tuesday morning session, the stock had surged to its daily limit of VND16,950 ($0.64) per share, with trading volume exceeding 35 million shares.

Despite the rebound, PDR remains in a recovery phase following a prolonged downturn in Vietnam’s property sector. The stock had fallen from around VND26,000 per share in October 2025 to nearly VND15,000 in mid-March before recovering in recent weeks.

Growing funding pressure

With total investment estimated at VND50 trillion ($1.9 billion), Thu Thiem Eco Smart City would rank among the largest projects Phat Dat has ever pursued.

A 35% ownership stake would imply a capital commitment of approximately VND17.5 trillion, underscoring the significant financing pressure the company may face in the coming years.

In addition to its ambitions at Thu Thiem, Phat Dat is also considering investment in two build-transfer (BT) projects with combined investment of around VND24 trillion ($910.8 million).

According to chairman Nguyen Van Dat, participation in BT projects could help the company secure large land reserves in Ho Chi Minh City, strengthening its medium- and long-term development strategy.

Against that backdrop, Phat Dat’s management said capital demand in the coming period would be substantial. The company plans to continue raising capital while restructuring its investment portfolio through divestments from non-core projects in order to focus resources on new developments.

Phat Dat recently approved a plan to transfer 33 million shares, equivalent to a 30% stake, in Tam Hiep Urban Development JSC. At the same time, the company is preparing a rights offering of up to 199.5 million shares to existing shareholders at VND10,000 ($0.38) per share.

The proceeds are expected to be used to supplement working capital, invest in the Han River waterfront project, and increase ownership in AKYN Company, the developer of the 239 Cach Mang Thang Tam street project.