Nam Long considers buying another 34 hectares of land and decides buyer for the 2 projects in Dong Nai

Looking at a total 34 hectares of new land in Hanoi and Ho Chi Minh City 

In NLG Day on June 9, Nguyen Thanh Son, CEO of Nam Long (HoSE: NLG) shared that during the first 5 months of the year, the company has considered expanding its land bank in Hanoi and Ho Chi Minh City by a total of 34 hectares, of which 25 hectares located in Hanoi and another 9 hectares in Ho Chi Minh City. Every year, Nam Long spends an approximate of VND 2,000 billion to purchase new land and this year’s plan is now almost achieved. 

Nguyen Xuan Quang, the group’s chairman added, this is now an opportunity for Nam Long to increase its land bank this time is an opportunity for Nam Long to develop the land bank following these criteria: legal difficulties, creditability, and products branding. According to Quang, while some projects have gone to market and been waiting for buyers, Nam Long will prioritize the development of areas that have been cleared, well connected to infrastructure systems, and been paid land usage fees. 

The Chairman emphasized that Nam Long is developing smart townships in which the residents can live, work, and entertain… Thus the company will focus on the metropolitan areas near Ho Chi Minh City such as Dong Nai, Binh Duong, Long An, or the northern key economic region such as Hanoi, Hai Phong, Hung Yen, and Bac Ninh. At the moment, Nam Long has about 681 ha of clean land (including 9 projects in Ho Chi Minh City, Long An, Dong Nai, Can Tho, and Hai Phong). The management is confident that this is enough for development in the next 10 years. Nguyen Thanh Son states that despite the fluctuations in the market, the company’s main product i.e. affordable housing is still in high demand. Following Nam Long’s development strategy, Son believes that it is possible to sell all products from these 681 hectares of land within the next 10 years.

Nam Long’s land bank and development plan. 

In addition to the high demand from the market, Nam Long’s Director of Business Development and Marketing Nguyen Minh Quang, also pointed out the company’s financial strength resulted from the partnership with Japanese investors. The customers only pay 50% at Nam Long’s joint venture projects before the project completion, which reduces financial pressure for customers. At the same time, Nam Long has partnered with banks to offer payment packages at a discounted interest rate for 12 to 36 months, providing a more flexible financing option. Nam Long also integrated facility system which adds real value to the project and gives it an upgrade. For example, Waterpoint has completed swimming pools, tennis courts, football fields ... Nam Long also extends the sales team, to broadly introduce its products to the wider community from South to North.  

Current status of the projects

This year, Nam Long is expecting a sales revenue of VND 6,000 billion from projects including the Akari City 8.5ha (Binh Tan), the 165 ha in Phase 1 Waterpoint Township, the Mizuki Park Township 26 ha (Binh Chanh), the 2 projects Waterfront and Nam Long Dai Phuoc (Dong Nai), the Nam Long Hai Phong township (21 ha). Son estimates that over 3,000 products of Mizuki Park’s phase 1 and Waterpoint’s phase 1 will be handed over to customers and another 3,800 products will be on sales, exceeding the plan of 2,500 products. This execution plan is prepared for the case if the market gets better. At the moment, 1,437 products of Mizuki Park Phase 1 have been delivered and the company has proceeded to phase 2 infrastructure. This year, this project will add an extra of 1,200 products. At Akari City, more than 1,800 products of phase 1 are under construction, expected to be completed  in October. Detailed planning of phase 2 has just been approved with 1,725 products to be built and handed over in the third quarter of next year.

Akari City’s progress in May.

At Waterpoint’s phase 1, the company plans to hand over 450 products in Q4 and open new sales in late June - July. Son also added that in May - June, the company sold 75 products to customers within just 2 hours. Hence this project is expected to exceed sales target.  At the 2 projects in Dong Nai, leveling has been completed. At the Nam Long Hai Phong township project, the company has conducted the masterplan and cooperated with Nishi Nippon Railroad to develop Flora, intermediate products, and Ehome, affordable products. 

Nam Long plans to transfer the two projects in Dong Nai, i.e. Dong Nai Waterfront and Paragon Dai Phuoc. Pham Dinh Huy, Investment Director shared that the Dong Nai Waterfront project has been transferred to the new partner as capital transfer and the development contract negotiation is almost finished followed by the investment application and approval. Paragon Dai Phuoc has received 3 offers to join the project and Nam Long will make the final decision by next week.  The project will be deployed in late Q3 or early Q4. 

Nam Long’s management has revealed earlier that the capital transfer from these two projects could add a financial income of about 725 billion dongs, accounting for 73% of this year’s revenue. Huy clarified that the capital transfer will be recorded as financial revenue but the core business structure remains the same.  The capital transfer is easier and faster to do than project transfer.  

(Source: NDH)