Vnre.blogspot.com - Dragon Capital Group Limited on Tuesday signed a cooperation agreement with Saigon Thuong Tin Real Estate Joint Stock Company, or Sacomreal, to invest in the local realty firm in a move to expand its investment portfolios in real estate.
The deal allows the fund management company to become a strategic partner with the local realty firm as it will get 7.5% of 100 million shares that Sacomreal plans to list on the Hanoi Stock Exchange in July.
Vu Huu Dien, director of portfolio management of Dragon Capital, says that because of the need to restructure its investment portfolios, the company has decided to sell part of its Sacombank shares to expand its property investment portfolios.
Dien says the long term property market is one of the key sectors promising good growth, and Sacomreal is one of the realty firms Dragon Capital has seen as having potential for investment options.
An active management team, who can adapt to the fast changes of the property market with solutions, is another highlight encouraging the capital-management company to invest into the realty firm, he says.
Dang Hong Anh, Sacomreal board chairman, pins hopes on the cooperation, saying it will help the company’s professionalism in management activities, as well as contribute to promoting the company’s investment potentials to other investors.
“With its professional financial analyzing expertise, Dragon Capital surely analyzed our current business development, and has projected our potential growth before deciding to become our strategic shareholder,” Anh says. “This will prompt other investors to invest in our shares.”
Sacomreal has 18 property projects in the office, commercial, resort and apartment sectors. These projects are in HCMC and other regions, such as Dalat, Haiphong and Quang Nam.
The realty firm sets a target revenue of VND1,870 billion for this year, in which revenue from property activities will be around VND1,780 billion, 95% of total revenue. It expects to earn a profit of VND650 billion and plans to offer a dividend of 30% to shareholders. Last year, the company grossed nearly VND416 billion in revenue and earned VND137 billion.
Source: The Saigon Times/Sacomreal