The People’s Committee of Dong Nai province has recently issued a decision to revoke nearly 123 hectares of land used by Nhat Quang Trading and Construction Co., Ltd. (which was allocated land without land use fees) to build technical infrastructure, greenery, water surfaces, village stations, administrative headquarters, transportation land, kindergarten land, first and second grade school land, which is part of the Nhon Phuoc tourist urban infrastructure construction project.
According to the decision, the reason for the land revocation is to comply with the legal regulations on land use for the case of Nhat Quang Trading and Construction Co., Ltd. merging with Song Tien Real Estate Development Joint Stock Company (STC).
After the revocation, the above-mentioned land area will be transferred to Song Tien Real Estate Development Joint Stock Company without land use fees. The land transfer period is based on the progress of the project implementation. After completing the investment in infrastructure works, the province requires the investor to hand over the entire above-mentioned land area to the local authorities for management and use in accordance with regulations.
Earlier, in October 2023, the People’s Committee of Dong Nai province approved a decision to extend the deadline for Song Tien Real Estate Development Joint Stock Company to implement the Nhon Phuoc tourist urban infrastructure construction project with an additional 310 days. The project covers an area of nearly 205 hectares in Dai Phuoc commune, Nhon Trach district. The reason is that the company was affected by the COVID-19 pandemic.
According to research, Nhon Phuoc tourist urban area is located in Cu Lao Ong Con, Dai Phuoc commune, Nhon Trach district, Dong Nai province. It is known as the Nhon Phuoc pearl island because all four sides of the project are surrounded by the Dong Nai River and it is adjacent to District 2 and District 9 of Ho Chi Minh City.
The project was assigned land by the People’s Committee of Dong Nai province since the end of 2004 and the 1/500 approved decision was issued in early 2007. Previously, the project was invested by Nhat Quang Trading and Construction Co., Ltd.
In early 2019, Nhat Quang officially merged with Song Tien Real Estate Development Joint Stock Company (a company owned by the husband, wife, and daughter of the owner of Suoi Tien amusement park), and the rights to develop the pearl island urban area were transferred to Song Tien Real Estate Development Joint Stock Company.
The project at the time was introduced with 2,000 villas, houses, and a block with 1,700 apartments, with a total investment of about 20,000 billion VND. According to the plan, the project is divided into 6 phases and will be completed by 2026. Currently, the project is introduced under the commercial name of Angel Island.
In 2020, Song Tien Real Estate Development Joint Stock Company raised over 1,500 billion VND in bonds, some of which were secured by the above-mentioned project.
At the end of 2021, a real estate corporation in the South acquired the controlling stake and became the parent company of Song Tien Real Estate Development Joint Stock Company, thereby developing the Angel Island project.
Regarding the project, in May 2023, the Government Inspection Team announced the resolution of project difficulties. At the time of the report, the investor had been allocated about 81.7 hectares, including about 36.6 hectares of production and business land, and about 45 hectares of residential land. Currently, the investor has fulfilled financial obligations and has been issued a certificate for about 75 hectares of land, but has not been approved for investment policy and investor selection for the project.
The Inspection Team believes that the authority to approve the investment policy and select the investor for the Nhon Phuoc tourist urban area belongs to the People’s Committee of Dong Nai province and requests the province to direct local authorities to expeditiously carry out administrative procedures to implement the project.
According to the semi-annual business results of 2023, Song Tien Real Estate Development Joint Stock Company reported a loss of 22 billion VND. In the same period last year, the company also recorded a loss of 16 billion VND.
Regarding business results for the first six months of 2023, Song Tien Real Estate Development Joint Stock Company continued to report a loss of over 22 billion VND (compared to a loss of 15 billion VND in the same period last year).
As of the end of June 2023, the company’s equity capital was nearly 4,491 billion VND. The debt-to-equity ratio was 1.09 times, equivalent to a debt of 4,894 billion VND. Of which, bond debt was 943 billion VND.
