Nam Long is expanding the land bank

Despite the current lank bank of 681 hectares across the provinces and cities, Nam Long still spends 2,000 billion dongs every year on land acquisition.

At the recent General meeting, NLG’s Chairman Nguyen Xuan Quang said that the company is investing its resources to expand the land bank.

pecifically, NLG took advantage of the time and opportunity to purchase more land after Covid-19 has cause businesses legal constraint and financial pressure, forcing them to liquidate their land to overcome difficulties. NLG’s acquisition targets include lands that are large in size, location within satellite provinces or cities, or at the gateway of key economic regions in the South, even in the North. The company decides to spend 2,000 billion dongs each year on land acquisition to prepare for upcoming projects. Currently, Nam Long is considering to expand its land bank in the two largest cities, Hanoi (25 ha) and Ho Chi Minh City (9 ha).

A corner of a 26-hectare township developed by Nam Long in Ho Chi Minh City.

Nam Long’s expanding lank bank to become a major township developer. Quang predicts that satellite towns are the future trend of the real estate market in the next few decades. This is the reason that although the total land bank by the end of 2019 is 681 ha, the company will continue to acquire new land in 2020.

The chairman of NLG analyzed that, to compete in the race with other township developers, businesses must have an extremely large land bank and must be a professional in managing and arranging capital. Base on that foundation, the company can create a sizable utility system relatively fit with a township to provide unified infrastructure connections and attract customers. 

In response to population relaxation demand, the company prioritizes the development of affordable housing properties in townships. This is not a low-cost property but a house that could be paid with a household's accumulated income of 7 years or more.

"The characteristic of affordable housing product is attracting the real demand and remaining the stable segment in all situations, even when the real estate market is in crisis," Quang said. In 2020, the company adjusted its safe sales plan with new sales targets for products, projects, and commercial real estate of VND 6,351 billion, increased by 317% compared to 2019, and a profit target of 820 VND billion from the township development activities. 

As of 2019, the total of the group’s cash, cash equivalents, and bank deposits was VND 1,966 billion. The total land fund was 681 hectares with 6 potential projects in southern key economic provinces including Ho Chi Minh City, Dong Nai, Long An, Binh Duong, and Can Tho. The company is planning on a Northern bound to Hai Phong and Hanoi.  

(Source: Vnexpress)