Vietnam developer TTC Land eyes steady cash flow with sister firm acquisition

Saigon Thuong Tin Real Estate JSC (TTC Land), a subsidiary of multi-sector conglomerate TTC Group, is moving to secure stable, recurring revenue through the acquisition of Thanh Thanh Nam (TTN), another TTC Group member.

At its 2026 annual general meeting of shareholders on Thursday, shareholders approved a plan to issue TTC Land’s SCR shares to swap for TTN equity. Following the transaction, TTC Land will own 99.6% of TTN, turning it into a subsidiary.

Based on valuations by Hoang Quan Valuation Co., SCR shares were priced at VND10,719 ($0.41) each as of December 31, 2025, while TTN shares were valued at VND23,790. The agreed swap ratio is 2.2:1, meaning each TTN share will be exchanged for 2.2 SCR shares.

TTC Land plans to issue up to 186 million new shares, raising its charter capital from VND4.3 trillion to VND6.17 trillion ($234.24 million). The shares issued for swap will be subject to a one-year transfer restriction.

Addressing shareholder concerns, chairman Nguyen Thanh Chuong described the deal as a strategic move to “pour concrete” - a metaphor for building a stable financial foundation.

“The real estate market has changed significantly in recent years. To ensure liquidity, we need bold decisions,” Chuong said. “TTN, which operates in office and commercial leasing, generates real cash flow. With this foundation, TTC Land will not have to worry about daily cash needs.”

He stated that TTN currently owns the Tay Nam office building in Ho Chi Minh City, offering around 42,000 square meters of leasable space. TTC Land plans to consolidate all leasing activities under TTN, expecting it to become a key profit contributor.

Beyond traditional leasing, TTN is also expanding into new segments such as highway rest stops. The company is set to launch its first rest stop in Phan Thiet, the former Binh Thuan province (now Lam Dong province after their merger) with plans to develop nine more in the future, each comprising two facilities on opposite sides of the road.

“The cash flow from these rest stops is very promising,” Chuong added.

Just part of broader M&A strategy

TTN has charter capital of VND848.8 billion ($32.22 million), equity of VND888 billion, and total assets of VND1.27 trillion. Its shareholders include several TTC-affiliated entities and individual investors.

Speaking at the meeting, TTC Group CEO Huynh Bich Ngoc noted that while global economic conditions remain challenging due to post-pandemic effects and geopolitical tensions, Vietnam’s stable political environment continues to support business growth.

However, she noted the domestic real estate sector faced significant headwinds between 2023 and 2025. Entering 2026, government measures to remove legal bottlenecks have helped revive projects, including long-delayed developments by TTC Land.

For the 2026-2030 period, TTC Land aims to accelerate growth through M&A, including the TTN deal and potential acquisitions of other companies to expand scale and improve revenue and profitability, she revealed.

CEO Vo Thanh Lam said the company is still in a “preparation and accumulation” phase rather than a breakthrough stage, with much of its value tied to projects undergoing legal completion. Over 2024-2025, TTC Land made progress in resolving legal issues and expects two to three projects to become eligible for development this year.

The company targets consolidated net revenue of nearly VND1.28 trillion ($48.59 million) and pre-tax profit of VND100 billion ($3.8 million) in 2026, roughly in line with the previous year. Revenue will mainly come from leasing, real estate services, and partial asset disposals.

TTC Land also plans to divest assets in Phu Thuan, Phu Huu, and Phu Quoc, increase occupancy rates in commercial spaces, and expand leasing operations to stabilize cash flow.

Meanwhile, it is accelerating legal procedures for key projects such as Charmington Dragonic and Panomax in HCMC, preparing to launch sales at the TTC Tay Ninh project in the southeastern province of Tay Ninh in the fourth quarter of 2026, and bringing TTC Plaza Danang in the central city of Danang into operation on schedule.

After a slowdown following the Covid-19 pandemic, TTC Land saw a recovery in 2025, posting revenue of VND1.23 trillion ($46.7 million), up 53.5% year-on-year and the highest in four years. Its after-tax profit reached VND67 billion ($2.54 million), a sharp increase from VND4.2 billion the previous year.

By end-2025, the firm’s accumulated profit stood at VND470 billion ($17.86 million). However, citing reinvestment needs, the board proposed retaining all earnings and not paying dividends, marking the fourth consecutive year without shareholder payouts.

On the Ho Chi Minh Stock Exchange, SCR closed Thursday at VND6,120 ($0.23) per share.