The ELC land lot acquisition involves a plot size of 7,561m2, with a construction area of 3,024m2, spanning 3-17 floors above ground and 2 basement levels. The maximum investment for this acquisition is VND 215 billion.
The company’s stated purpose for the acquisition is to develop, construct, manage, and operate a complex encompassing offices, services, a commercial center, and a cultural hub in the aforementioned land lot, dubbed the West West Lake Complex.
However, ELC is not the sole acquirer of this project. The ELC Board of Directors has approved a joint venture with MBH Joint Stock Investment and Development Company to acquire the project from Tay Ho Tay Company. Each party is responsible for paying 50% of the total acquisition cost to Tay Ho Tay Company.
Notably, ELC has not mentioned real estate acquisition as a capital usage plan in its recent public offering of shares in mid-October 2024. With nearly VND 125 billion raised (excluding related expenses), ELC intends to allocate VND 82 billion for additional working capital and nearly VND 43 billion for researching new technologies and products.
Of the VND 82 billion, ELC will use VND 66 billion to repay principal and interest on a credit contract with the Military Commercial Joint Stock Bank (MB, HOSE: MBB) – Thang Long Branch, and VND 16 billion to settle debts with suppliers. The remaining VND 43 billion will be invested in technologies such as GenAI, AI Camera, intelligent data platform, and satellite interception and signal processing.
In the first nine months of 2024, ELC‘s business results showed a significant decline, with a 6.5% decrease in revenue and a nearly 46% drop in profit, totaling approximately VND 428 billion and VND 21 billion, respectively.
Who are Tay Ho Tay Company and its partner, MBH?
Tay Ho Tay Company is the investor of the Tay Ho Tay Urban Area project (commercially known as Starlake), which received approval from the Prime Minister in 2005 and was granted an investment license the following year. The project covers an area of over 162 hectares in the Tay Ho Tay area, spanning the administrative boundaries of Xuan La Ward (Tay Ho District), Nghia Do Ward (Cau Giay District), Xuan Tao Ward, and Co Nhue 1 Ward (Bac Tu Liem District) in Hanoi. It is designed to accommodate approximately 24,300 residents.
The investment scale of the urban area project is over VND 30 trillion, equivalent to 1.3 billion USD. The implemented capital includes over VND 4,500 billion in contributed capital and nearly VND 26 trillion in mobilized capital. The project has a duration of 56 years, starting from 2006. Upon completion, all technical and social infrastructure will be transferred to the Hanoi People’s Committee without compensation.
The Tay Ho Tay Urban Center comprises international financial, banking, commercial, and service centers, luxury hotels, trading offices, residences, a central square, a central pedestrian street, greenery, and water bodies.
The project is planned to be implemented in two phases. Phase 1 involves land clearance from 2010 to 2018, infrastructure construction completion by 2018, and the first phase of development by 2024. Phase 2 includes infrastructure construction within 24 months from the date of receiving clean land and development and operation within 60 months from the date of land handover.
 Tay Ho Tay Urban Area Project Perspective
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Tay Ho Tay Company is responsible for constructing the technical infrastructure for the entire urban area and developing projects on the planned land lots, except for those transferred to secondary investors.
At the end of 2022 and the beginning of 2023, Tay Ho Tay Development THT consecutively transferred two component projects to secondary investors. Specifically, the CMC Creative Space Hanoi project at land lot B2CC3, spanning over 1.1 hectares and 23 floors, was transferred to CMC Corporation, with a total expected investment of nearly VND 1,800 billion. Additionally, the Trade Center and Shopping Mall project at land lot B1CC1-2, covering nearly 2.4 hectares and a maximum of 5 floors, was transferred to Dai Quang Minh Real Estate Investment Joint Stock Company, with an investment scale of over VND 550 billion.
Tay Ho Tay Company is a foreign-owned enterprise initially formed by the capital contribution of five Korean construction companies: (1) Daewoo Engineering & Construction Co., Ltd, (2) Daewon Co., Ltd, (3) Dong IL Highvill Co., Ltd, (4) Keangnam Enterprises., Ltd, and (5) Kolon Engineering & Construction Co., Ltd. Today, Daewoo Engineering & Construction Co., Ltd. holds 100% of the capital after the other four shareholders transferred their stakes. Mr. An Kuk Jin serves as the General Director and legal representative. As of October 31, 2024, the capital represented by Mr. An Kuk Jin has increased from nearly VND 4.6 trillion to nearly VND 4.6 million billion.
ELC’s joint venture partner, MBH Joint Stock Company, was established on March 07, 2024, with its head office in Vimeco Tower, Cau Giay District, Hanoi. Its main business lines include real estate, encompassing the sale/transfer, lease/sublease/lease-purchase of real estate and the transfer/sublease of land use rights. With a charter capital of VND 100 billion, the company is chaired by Ms. Nguyen Thi Kim Cuc (born in 1992), who holds a 20% stake and acts as the legal representative. Other shareholders include Ms. Pham Mai Anh (30%), Ms. Luu Dieu Huyen (25%), and Mr. Nguyen Vu Mien (25%).
Ms. Huyen is also a founding shareholder and Director of Dai Cat Commercial Technical Joint Stock Company, located at 381 Doi Can, Hanoi. Established in July 2023, the company specializes in wholesale fertilizer, pesticides, microbial-based products for functional foods, and ingredients and by-products for animal feed. With a charter capital of VND 1 billion, Ms. Huyen holds a 40% stake, while Nguyen Thi Thanh Hien and Nguyen Thi Hoang Thanh each hold 30%.
