The No.1-T6 building project located in the most desirable prime location in the Diplomatic Corps Area has been recently purchased by Taseco Land from the original investor Hancorp for completion and distribution. Photo: Taseco Land.
No.1 investor registers the 3770 billion project in Bac Giang
According to data from the Tender Management Agency, the Ministry of Planning and Investment, Taseco Real Estate Investment Joint Stock Company (Taseco Land) is the only investor to register to implement Project 2, located in the Residential Area at Tien Phong commune, Yen Dung district and Dong Son commune, Bac Giang city.
The project has a land use scale of about 40.9 hectares, with a preliminary total project cost of over 3770 billion VND.
According to the prior project invitation of the Bac Giang Provincial Department of Planning and Investment, the project provides real estate transfer and housing sales products (rough construction, completed facade) within the scope of land implementing the project according to the approved Detailed Construction Planning.
Specifically, the project will have 296 adjacent land lots with a total area of 27,685 m2; Land for housing and houses for rough construction and completed facades with 364 units, total land area of rough construction is 45,966 m2, total floor area of 192,649 m2.
The project has 17,857 m2 of high-rise apartment building with 156,248 m2 of floor area.
The current status of land implementing the project as announced includes: annual crop land (about 33.96 ha); perennial crop land (about 0.17 ha); aquaculture land (0.38 ha); other agricultural land (0.06 ha), land used for public purposes (3.56 ha), cemetery, cemetery, funeral home, crematoriums (1.92 ha), rivers, springs, canals, ditches, streams and specialized water surfaces (0.06 ha), other non-agricultural land (0.08 ha), types of land with unidentified purpose of use (0.1 ha), agricultural land (already approved for land acquisition) of 0.6 ha.
Increased debt pressure
Taseco Real Estate Investment Joint Stock Company (Taseco Land, UPCoM: TAL) has just released the consolidated financial statements for the financial year ended December 31, 2023. Accordingly, Taseco Land recorded revenue of VND 3,238 billion and pre-tax profit of VND 661 billion, with net profit reaching over VND 503 billion.
However, the noteworthy point in Taseco Land’s financial picture is the increasing debt to repay.
Specifically, the debt to be repaid at December 31, 2023 reached VND 6,039 billion, an increase of 49% compared to the beginning of the year. The notable development is that the outstanding loans reached VND 3,262 billion, an increase of 2.8 times. Taxes and state payments reached VND 481 billion, an increase of 2.8 times. Meanwhile, short-term customer payments decreased significantly by 88%, remaining only VND 26 billion.
The high level of debt has pushed up the financial costs of Taseco Land in 2023, reaching the threshold of VND 101 billion, an increase of 5.3 times; management costs of VND 187 billion, an increase of 33%.
Taseco Land’s equity at the end of 2023 reached VND 4,137 billion, an increase of 9% compared to the beginning of the year. The debt-to-equity ratio was 0.78 times.
In terms of cash flow, Taseco Land’s cash flow for the whole of 2023 was negative, resulting in the end-of-year cash and cash equivalents being only VND 288 billion, a decrease of 38% compared to the beginning of the year.
Mortgaging a series of assets
With the rising debt, Taseco Land’s financial leverage is being stretched as the company is mortgaging a series of assets, property rights related to project implementation.
At the end of November 2023, Taseco Land mortgaged assets, property rights related to the Commercial, Service and Mixed Use Complex Project, Nam Thai (Thai Nguyen) project to VietinBank Thanh Xuan Branch.
Specifically, Taseco Land mortgages the entire
“Claims, receivables, insurance benefits, compensation, fees that the mortgagor receives in the process of investing, doing business, and developing projects, profits, income from business operations, exploiting the value of land use rights, or assets attached to land (interest) of the Commercial, Service and Mixed Use Complex Project, Nam Thai at Nam Tien ward, Pho Yen city, Thai Nguyen province.”
Along with the project in Thai Nguyen, at the end of November 2023, Taseco Land also mortgage assets, property rights related to its project in Thanh Hoa to VietinBank Thanh Xuan Branch.
Specifically, the mortgage is the entire
“Claims, receivables, insurance benefits, compensation, fees that the mortgagor receives in the process of investing, doing business, and developing projects, profits, income from business operations, exploiting the value of land use rights, or assets attached to land (interest) of the project “Residential area in Resettlement Area in Hai Yen commune in Nguyen Binh commune, Tinh Gia district, Thanh Hoa province.”
Earlier, in June 2023, Taseco Land mortgaged the entire
“Claims, receivables, insurance benefits, compensation, fees that the mortgagor receives in the process of investing, doing business, and developing projects, profits, income from business operations, exploiting the value of land use rights, or assets attached to land (interest) of the
“Urban area belonging to project No. 4, New urban area in the center of Thanh Hoa city, Thanh Hoa province”
, which Taseco Investment Joint Stock Company – Taseco Group Joint Stock Company – Phu My Real Estate Investment Joint Stock Company is the investor in Dong Hai ward, Thanh Hoa city.”
In addition to mortgaging assets, property rights related to ongoing projects, Taseco Land has also continued to mortgage assets, property rights related to real estate sales contracts with customers for banks.
Specifically, in November 2023, Taseco Land also mortgaged the entire
“Claims, payment requests, damage compensation rights, insurance benefits arising from the Contract”
of 203 future apartment sale contracts for BIDV Transaction Office 1.
In May 2023, Taseco Land also mortgaged the entire
“asset rights arising from the purchase contracts of apartments in the Mixed Commercial building and apartment building Alacarte Ha Long”
of 906 real estate purchase contracts with customers for VietinBank Thanh Xuan Branch.
Prior to that, in January 2022, Taseco Land mortgaged the entire
“Legal ownership rights of Taseco Land arising from 84 land use rights transfer contracts in the Riverview Residential Project in Luong Son Town, Luong Son District, Hoa Binh Province.”
In addition to mortgaging assets, property rights related to the project and real estate purchase contracts, Taseco Land is also
mortgaging its shares in other companies to banks.
Specifically, in December 2022, Taseco Land also mortgaged 9,000,000 shares issued by Construction Investment Joint Stock Company 4 (stock code: CC4) that belong to Taseco Land Real Estate Investment Joint Stock Company and all property rights derived from the above shares for the VietinBank Hanoi Branch.
Also in December 2022, Taseco Land mortgaged 11,880,000 shares (valued at VND 118.8 billion) of Taseco Land in Alacarte Ha Long Joint Stock Company and all property rights arising from the above shares.
