Nishi Nippon Railroad buys 25 per cent stake in HCMC urban area project

Nam Long Investment JSC transferred a 25 per cent stake in the Nam Long Dai Phuoc urban area project to its Japanese strategic partner Nishi Nippon Railroad on June 17.

After completing the transfer worth VND662 billion ($27.6 million), it is estimated that Nam Long will earn an after-tax profit of about VND200 billion ($8 million) in the second quarter of 2024, the company said in a statement.

Site clearance compensation has already been completed for the project, while authorities are looking at zoning details. The investor has also fully paid land use fees and received a use of rights certificate for the entire project. According to the plan, the project will include mainly high-end semi-detached and detached villas.

Located on Dai Phuoc Island, adjacent to districts 2 and 9 (Ho Chi Minh City), Nam Long Dai Phuoc stretches 1,200m along the Cai River, and has an integrated utility system with the island’s central park and the Teakwang Jeongsan golf course.

In the first quarter of 2024, Nam Long achieved revenue of VND205 billion ($8.5 million), down 13 per cent over the same period last year and 87.5 per cent compared to the previous quarter. However, the company gained a profit after tax of VND65 billion ($2.7 million) compared with just VND16 billion ($660,000) on-year.

According to the 2024 AGM, Nam Long plans to record sales in 2024 of over VND9.55 trillion, coming from the Nam Long 2 - Can Tho project (VND2.02 trillion), Southgate project (VND2.8 trillion), Mizuki Park project (VND2.35 trillion), and Akari City project (VND1.7 trillion).

Sales in the first quarter of 2024 only achieved 12.3 per cent of yearly sales plan.

Bich Ngoc

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