Construction work at the Aqua City project.
“Units that do not directly cooperate may think that Aqua City has been stagnant from last year to now, but in fact, we are only stuck in some places that are not yet suitable for planning“, said Duong Van Bac – Chief Financial Officer of Novaland, at the update on the Group’s restructuring situation and project development progress, held on July 30 in Ho Chi Minh City.
In February 2023, at the conference on promoting the healthy and sustainable development of the real estate market chaired by the Prime Minister, Mr. Bui Thanh Nhon – Chairman of Novaland’s Board of Directors, expressed difficulties due to Covid-19 and the instability of the world situation, while requesting support in terms of mechanisms so that the enterprise can overcome them.
“I propose that the Prime Minister direct the selection of Aqua City in Dong Nai for the Prime Minister’s Working Group to pilot the removal of difficulties. This is Novaland’s key project at the present time. If this project is solved, it will be the key to solving all of Novaland’s difficulties, so that the enterprise can complete the project, perform the obligation to repay bonds, banks…“, Mr. Nhon suggested.
By the end of June 2023, Novaland, together with VPBank and construction contractors, signed a cooperation agreement to restart and continue the implementation of the Aqua City project.
At a recent information announcement, Novaland’s Chief Financial Officer Duong Van Bac said that Aqua City has been re-granted a sales license since November 2023 and is proceeding with construction and product delivery again in subdivisions that are suitable for planning.
“Aqua City has 9 subdivisions, of which 6 are waiting for the new 1/10,000 planning of Bien Hoa city, after which investment and planning can continue to be implemented. In the remaining 3 subdivisions, 60% are suitable for planning, have been granted a sales license, and are being constructed and handed over“, said Mr. Bac.
Mr. Duong Van Bac – Chief Financial Officer of Novaland. Photo: VGP.
Up to now, Aqua City has handed over 516 products and is expected to hand over an additional 891 products in the last 6 months of 2024. The plan is to hand over 2,071 products by 2025 and 3,155 products by 2026.
“Aqua City and NovaWorld Phan Thiet are the two key project clusters of Novaland. Up to now, the legal procedures of NovaWorld Phan Thiet have been almost completed, only stuck at Aqua City. Therefore, we are making every effort to handle this. If this is resolved and Aqua City meets the conditions for sales, we will have solved 90% of the restructuring work“, shared Mr. Bac.
After the decision to restructure the entire Group at the end of 2022, as of June 30, 2024, Novaland’s total debt to be paid to lenders decreased by VND 8,122 billion, equivalent to 13%, compared to December 31, 2022. Currently, 14/16 projects belonging to the project clusters being implemented by Novaland continue to be constructed.
In the second quarter of 2024, Novaland recorded consolidated revenue of VND 7,056 billion, including revenue from sales, services, and financial activities. Net revenue from sales reached nearly VND 1,891 billion, up 37% over the same period last year. Profit after tax recognized a profit of nearly VND 345 billion.
Novaland reports over VND 1,600 billion in profit for Q4/2023, bond debt reduced by VND 6,000 billion in one year.
In 2023, Novaland achieved a profit of over 800 billion VND, in contrast to the first half of the year when the company incurred a loss of over 1,000 billion VND.
New developments at the prime 1,500m2 ‘golden land’ area in Ho Chi Minh City
Before the emergence of the real estate giant, the leadership of Seaprodex underwent significant changes. The prime location of the company’s land in Ho Chi Minh City has also experienced new legal developments.
