Vietnam developer Saigonres plans $650 mln investment for next 5 years

Saigon Real Estate Group JSC (Saigonres) plans total investment of VND17.11 trillion ($650.37 million) for 2026-2030, implying average annual capital demand of about VND3-4 trillion ($114-152 million).

Saigonres (HoSE: SGR) expects to secure and mobilize substantial funding in 2026-2027 to meet project development schedules, particularly for compensation and site clearance activities, heard its AGM on Friday.

At the meeting, executives also outlined eight key projects for the next five years. The projects are part of its existing pipeline, while the developer said it will continue seeking opportunities to expand its land bank.

The portfolio includes two projects that have completed compensation work: the VND535 billion ($20.34 million) Van Lam residential area project in Tuyen Quang commune, the central province of Lam Dong, spanning 18.29 hectares; and the VND535 billion ($20.34 million) Le Sat high-rise apartment project in Phu Tho Hoa ward, Ho Chi Minh City, covering 7,743 square meters.

Several others have completed most compensation work, including the 49.9-ha Viet Xanh eco-urban area in Luong Son commune, the northern province of Phu Tho; the 30.04-ha Vung Bau resort complex in Cua Can commune in Phu Quoc Special Administrative Zone, the southern province of An Giang; and the Phu Hoi residential area spanning 7.93 hectares in in Nhon Trach ward in the southern province of Dong Nai.

Meanwhile, the Nam Tien 2 urban area and the Yen Binh digital technology park, both in the northern province of Thai Nguyen, are undergoing compensation work. The Tien Yen project in Dien Xa and Hai Lang communes, the northern province of Quang Ninh, is planned for the development of a golf course, resort, and medicinal herb cultivation and processing facilities, with the company currently managing the entire land bank for the project.

Chairman Pham Thu said the company’s current financial resources remain limited while capital must be allocated across multiple projects, describing it as the biggest challenge this year. Given this, the board and executive team have mapped out various measures, including divesting selected projects to generate profit for other developments, he said.

The company also plans to seek partners or attract investment funds to jointly develop projects and is considering bond or share issuances to raise capital, he said, while calling for shareholder support.

It was reported at the meeting that Saigonres posted total pre-tax profit of VND632.7 billion ($24.05 million), equivalent to 105% of charter capital, during 2021-2024, while maintaining cash dividend payments and building a clean land bank of more than 1 million square meters.

Pointing to challenges facing the real estate sector over the past five years, including the lingering impact of the Covid-19 pandemic from 2020 to 2023 and the restructuring of government agencies in 2024 alongside administrative boundary mergers in 2025 that caused most investment procedures to be suspended, Thu said the company’s performance over the period reflected the efforts of its leadership and employees.

Entering the 2026-2030 period, Saigonres said it sees the phase as one of strong, breakthrough growth across all operations, with the goal of becoming one of Vietnam’s leading real estate developers.

The company projects total revenue of VND26.73 trillion ($1.01 billion) for 2026-2030, with earnings expected to accelerate in 2028-2030 as most projects enter commercial operation.

Total pre-tax profit is forecast at about VND6.33 trillion ($240.61 million), or an average of VND1.27 trillion a year, while annual dividend payouts are projected at 15-20%.

For 2026 alone, it targets revenue of VND1.13 trillion ($42.95 million) and pre-tax profit of VND550 billion ($20.91 million), up 4.3 times and 5.8 times, respectively, from 2025 results.

In Q1, the company posted revenue of VND24 billion ($912,271), equivalent to the level recorded a year earlier, and pre-tax profit of VND5.2 billion ($197,658).

On the Ho Chi Minh Stock Exchange (HoSE), SGR shares closed Friday at VND15,250 ($0.58) apiece.