During Sacombank’s (stock code: STB) 2024 annual shareholders meeting, the bank’s executives announced the successful auction of a secured debt receivable against the Phong Phu Industrial Park project.
“Rescuing” a debt that had been put up for sale six times
To date, Sacombank has recovered 20% of the total initial offering price. The successful bidder will pay as the project’s legal documentation is completed with 40% of the total amount expected to be paid in 2024 and the remaining 40% in 2025.
According to information from Agriseco Securities Company, Sacombank successfully auctioned the Phong Phu Industrial Park for over VND 7,900 billion and is waiting to receive payment. This will help Sacombank increase its income-generating assets, creating a high growth margin in the coming period.
Earlier in early 2023, Sacombank organized the auction of 18 secured debts against assets in the Phong Phu Industrial Park project. This was the sixth time Sacombank had offered the debt for sale with a starting price of VND 7,934 billion. Information from the bank showed that the total value of the debts as of December 31, 2021 was VND 16,196 billion, of which the outstanding principal was over VND 5,134 billion and the outstanding interest was over VND 11,061 billion.
This debt arose from SouthernBank’s lending during the 2011-2012 period, and when SouthernBank merged with Sacombank in 2015, this debt became a bad debt that Sacombank had to deal with.
According to research, the Phong Phu Industrial Park project covers 134 hectares at the southern gateway of Ho Chi Minh City. The project includes 67 hectares of industrial park land, with the remaining area serving industrial services, including supermarkets, hospitals, and expert housing…
Image of Phong Phu Industrial Park in Ho Chi Minh City.
New players emerge from Kita Group
The Phong Phu Industrial Park was originally invested by Phong Phu Industrial Park JSC. The company was established in June 2001, with the following shareholder structure: Binh Chanh Construction Investment JSC (BCCI) owning 70% of the charter capital; Nam Saigon Development JSC (Sadeco) owning 25%; and Tan Thuan Industrial Development LLC (IPC) owning 5%.
However, most recently, in October 2023, Phong Phu Industrial Park JSC announced that Mr. Tran Tan Hong Cuong (born in 1964) has become the new General Director/Legal Representative, replacing Mr. Nguyen Ngoc Quang (born in 1956).
Mr. Tran Tan Hong Cuong is also the legal representative of Thanh Tin Housing and Urban Development JSC, Tay Bac Minerals JSC, Ambi Investment LLC, Gia Phat Trading Investment JSC, and Nam Tung Construction Investment Service LLC.
Mr. Hong Cuong is also known as the Deputy General Director of KITA Group. He is also a member of the Board of Directors of Giai Phong Automobile JSC (stock code: GGG). Mr. Hong Cuong currently holds over 1.1 million GGG shares. On April 12, this businessman sold 400,000 GGG shares and has not been a major shareholder of Giai Phong Automobile since that day.
Mr. Tran Tan Hong Cuong is standing in the middle.
About KITA Group, where Mr. Tran Tan Hong Cuong is Deputy General Director, the company was established in 2014, initially operating in the beverage wholesale sector under the name F1 Food and Beverage JSC.
The secretive “boss” who holds the position of Chairman of the Board of Directors of Kita Group is Mr. Nguyen Duy Kien, born in 1969, currently living in Hanoi. The initial charter capital of this enterprise was VND 2 billion, of which Mr. Nguyen Duy Kien contributed 55% of the charter capital.
By 2019, this group had increased its capital to VND 300 billion. Of which, Mr. Nguyen Duy Kien holds 60%. Ms. Dang Thi Thuy Trang owns 39% of the capital.
Currently, KITA Group is a multi-industry development group, with Real Estate as its core business. The group’s headquarters are in Ho Chi Minh City, with branches in Hanoi, Da Nang, Can Tho, and a representative office in Guangzhou, China. The group’s projects span from North to South with a total land area of up to thousands of hectares of prime land in Hanoi, Ho Chi Minh City, Can Tho, Da Nang, and other major cities.
Some of the notable projects of this enterprise include Stella Mega City Can Tho, Stella Residence, KITA Capital, Stella Quoc Oai, Stella Hai Duong, Stella Ocean Park,…
Perspective of Stella Mega City Can Tho project.
By the end of 2019, Kita Group’s total assets had reached more than VND 2,700 billion, 4.5 times higher than at the beginning of the year. Owner’s equity also increased sharply from VND 295.8 billion to VND 691.6 billion.
