Phat Dat seeks shareholder approval for Thu Thiem Eco Smart City investment

Phat Dat Real Estate Development Corporation (HoSE: PDR) is seeking to become a strategic investor in the Thu Thiem Eco Smart City project developed by South Korean-backed Lotte Properties HCMC in Ho Chi Minh City.

The strategic investor is expected to contribute around 35% of the investment capital for the project, which has a total estimated investment of VND50 trillion ($1.9 billion).

On Wednesday, Phat Dat said its board had approved the finalization of the shareholder list for a written vote on matters under the authority of the annual general meeting of shareholders. The record date is June 1, while voting is expected to take place later in June.

The key proposal seeks shareholder approval for investments equivalent to 35% or more of the company’s total assets, based on its latest financial statements.

As of the end of the first quarter of 2026, Phat Dat reported consolidated total assets of around VND26.6 trillion ($1.01 billion), implying that any investment subject to shareholder approval would be valued at more than VND9.3 trillion.

The scale of the proposed investment suggests the company may be preparing for a major strategic transaction after several years focused on restructuring its portfolio and strengthening its balance sheet.

According to sources familiar with the matter, the shareholder consultation is linked to plans for participation in the Thu Thiem Eco Smart City project, developed by Lotte Properties HCMC in the Thu Thiem New Urban Area.

At the company’s annual shareholders’ meeting in April, chairman Nguyen Van Dat confirmed that Phat Dat was among the companies seeking to participate in the project by contributing around 35% of the investment capital.

At the time, Dat said Phat Dat ranked second among prospective investors behind another leading bidder.

Ambition to enter Thu Thiem’s premium property segment

The Thu Thiem Eco Smart City project is among the most closely watched developments in the Thu Thiem area, with total estimated investment capital of around VND50 trillion ($1.9 billion).

If Phat Dat acquires a 35% stake in the project, its capital contribution could amount to roughly VND17.5 trillion ($663.7 million), well above the threshold requiring shareholder approval.

However, the scale of the investment does not necessarily mean Phat Dat would have to immediately deploy the full amount. Large-scale real estate projects in Vietnam are typically developed in phases using a combination of equity, financing arrangements, investment partnerships and project-specific entities.

If completed, the transaction could mark a strategic turning point for Phat Dat as the developer seeks to enter a new growth cycle.

For years, Thu Thiem has been viewed as one of Vietnam’s most premium property markets due to its scarce remaining land bank in central HCMC, while also demanding strong financial capacity, legal execution and project development capabilities from investors.

Participation in the Thu Thiem Eco Smart City project would not only add a large-scale development to Phat Dat’s portfolio, but could also position the company among developers involved in landmark projects tied to HCMC’s future financial center.

Major opportunity, significant funding challenge

From a market perspective, projects in the Thu Thiem area continue to attract strong investor interest due to their prime location and long-term appreciation potential, as eastern HCMC benefits from ongoing infrastructure investment and ambitions to develop into an international financial hub.

At the same time, a transaction valued at tens of trillions of dong (VND10 trillion = $379.25 million) would present significant funding challenges for Phat Dat.

Investors are expected to closely watch how the company structures financing for the deal, including potential co-investment partnerships, capital raising plans and the level of financial leverage it may use.

If successful, the investment would not only rank among the company’s largest transactions to date, but could also serve as a key test of Phat Dat’s ambition to strengthen its position in the next phase of growth.

On the Ho Chi Minh Stock Exchange (HoSE), PDR shares closed Wednesday at VND16,200 ($0.6) apiece.