PYN Elite becomes major shareholder of Vietnam house developer Lideco

Finland-based PYN Elite Fund has bought a large batch of shares of Hanoi-based housing developer Tu Liem Urban Development JSC or Lideco to become a major shareholder in the latter.

On October 10, PYN Elite bought 6.1 million shares of Lideco, listed on the Ho Chi Minh Stock Exchange as NTL, raising its ownership in the latter to 5% from the previous zero, the fund said in a filing to the bourse on Thursday.

That day, 5.9 million NTL shares changed hands via put-through at an average price of VND21,230 ($0.8) apiece, 1.7% lower than the closing price at VND21,600. The transaction value was VND125 billion ($4.98 million).

PYN Elite’s move came in the context of Lideco expected to secure a license to start building an apartment complex in the Dich Vong new urban zone in Cau Giay district, Hanoi by the end of this year.

If construction can start in Q4/2024, Lideco may launch apartments of the project for sale one year later. The project will contribute greatly to the company’s earnings from 2026 onwards, according to Vietcap Securities.

Apartment prices in Cau Giay district have jumped over the past five years given a limited land bank and legal hurdles, according to Savills Vietnam.

Lideco earned an audited net profit of VND652 billion ($25.9 million) on revenue of VND1,416 billion in the first half of this year, compared to respective VND2.76 billion and VND120 billion a year earlier.

NTL shares closed down 0.9% at VND22,250 ($0.88) apiece on Friday, 16% lower than a peak at VND26,610 on July 12.

In January-September, PYN Elite booked returns of 20.61%, higher than a 13%-plus increase of the VN-Index. It had EUR830.7 million ($911.57) worth of assets under management as of September 30.