This news today could benefit CVCP...
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Stock investors sniff out real estate deals
(29-08-2006)
The new Ciputra urban zone in Ha Noi. Real estate traders and construction companies expect a new wave of investment when Viet Nam accedes to the WTO. — VNS Photo Doan Tung
HA NOI — Shares of real estate and construction companies are increasingly being seen as potentially lucrative investments in domestic securities markets.
Following the successful completion of its e-Town 1 and e-Town 2 projects, the Refrigeration Electrical Engineering Corp (REE) established the REE Real Estate Joint Stock Co to specialise in similar projects.
Mai Thanh, chairwoman of the company’s management board said, VND70 billion (US$4.3 million) of the initial VND100 billion ($6.2 million) in financing would come from the parent company, while the remainder would be sourced from a share issuance. The capital is to be channelled into building office blocks, apartments, hospitals, hotels and tourism resorts, she said.
The Thu Duc Housing Development Joint Stock Company has also issued shares to finance large construction projects. Last month, the company issued 7 million shares at a face value of VND10,000 at the HCM City Securities Joint-stock Company.
Nguyen Huu Nam, director of the company, said that while the volume of such shares was small, investors were attracted by what they saw as the company’s prestige and its future potential. Besides real estate, the company also invests in banks and financial investment funds, he said.
The Nam Long Investment Joint Stock Company has also attracted shareholders with its real estate projects, including the Sai Gon-Long Thanh My development in HCM City’s District 9, the Green View apartment complex in District 9, Nam Phu-Tan Thuan Dong project in District 7, the Nam Sai Gon office building, and other projects in Can Tho, Vung Tau, Binh Duong and Long An.
Nguyen Xuan Quang, chairman of the company’s management board, said Nam Long now had registered capital of VND55 billion and planned to increase its financial capital by listing shares on the domestic securities market.
Besides shares of real estate companies, those of companies specialising in infrastructure, such as the HCM City Technical Infrastructure Investment Joint Stock Company (CII), have also attracted investor attention.
Giao Thi Yen, chairwoman of the company’s management board, said CII planned to list 131,500 three-year bonds each at a face value of VND1 million. Upon maturity, each bond would be converted into 76 shares at a face value of VND10,000 per share, she said.
The Song Da Urban and Industrial Zone Investment and Development Joint Stock Company has submitted an application to list its shares, while the Song Da Corporation and Vinaconex both announced plans to list their shares next year.
Real estate traders and construction companies expect a new wave of investment when Viet Nam accedes to the WTO and the new Housing Law and Real Estate Trading Law come into effect, said Don Lam, general director of VinaCapital. — VNS
Theres sometimes a fine line between goals & greed...
