Looking back on the deal “change name, change owner”
More than a year ago, the name of Dream House Investment Corporation (DRH), the real estate and finance business only known as a secondary brokerage business and fertilizer business with The result is not much. However, since the arrival of a new group of shareholders of the 8x generation to indirectly “acquire” this company through the stock market, DRH has become a phenomenon of the real estate market and stock market. .
There are many concerns from the beginning about the possibility of success in this acquisition, because the players are young and have not quantified the financial capacity. However, more than seven months after the deal began, the “sweet fruit” of the deal was revealed.
According to the reporter of Real Estate Investment Newspaper, soon after the participation of the new group of shareholders, DRH drastically restructured the company completely. From early 2016 to now, DRH continuously announced information acquisition of a series of real estate projects, such as apartment complex 177 Huynh Tan Phat; 277 apartment block Binh Dong and project resort resort Loc An, Ba Ria – Vung Tau. These projects are located quite favorable but been “screening” for many years, after the transfer of DRH, these projects have been resurrected.
More noticeable for DRH is the acquisition of shares in Binh Duong Mineral and Construction Joint Stock Company (KSB), an enterprise in the field of minerals, construction stone and real estate. According to the resolution of DRH Board of Directors, the company is expected to increase its stake in KSB to at least 51% compared with the current ownership of 23% of chartered capital.
It is worth noting that after the DRH shareholder group ran KSB, the business results of this company always grows. According to the financial statement for the second quarter of 2017, KSB achieved 277 billion dong of net revenue, up 23.4%; net profit from operating activities was more than 103.6 billion dong, up by 50% and profit after tax was 83 billion dong, up 45.6% over the same period.
For the first 6 months, net revenue was 517.5 billion dong, up 29%; Gross profit margin improved to 43% from 39.5% in the same period last year; profit after tax nearly 144 billion, up 60%. EPS for 6 months reached VND2,612.
Especially, besides the real estate projects, with the orientation of the new Board, KSB is focusing on developing artificial sand products at very competitive cost. This is considered as the business sector has a huge potential demand in the context of natural sand mining activities are restricted in the whole country, causing sand prices to increase.
“Although the productivity has not increased but thanks to good cost control, KSB’s profit has increased significantly compared to last year. The profit increase is none other than all shareholders enjoy, “said Phan Tan Dat, CEO of DRH and chairman of KSB Board of Directors said and confirmed that the” real sweet “after DRH’s M & A deals are still ahead and will be demonstrated in the near future.
In the story M & A real estate projects make up the true value, can not fail to mention Novaland. From a few projects in 2013, through M & A deals, Novaland has held more than 40 projects. In particular, many projects from the “blanket” for years have been revived Novaland.
Most noteworthy is that recently, this corporation spent a considerable amount of money to buy more than 82% of shares of 21 Century International Development Corporation (C21), thereby full management, develop and develop Nam Rach Chiec Project in District 2, Ho Chi Minh City.
The immediate value that can be seen from this acquisition is that, after the acquisition, Novaland is rapidly transforming the project into an area of up to 30 hectares that has been erected over many years into a modern metropolitan area. Lakeview City.
Referring to the acquisition of real estate projects to quickly expand the enterprise, Hung Thinh Corp is also one of the “players” full of dynamic. This is the market is known as “tycoon” hunting project dead. Up to now, Hung Thinh has successfully implemented more than 20 acquisitions of projects.
The real sweetness of these deals is that after acquiring the “blanket” project, Hung Thinh quickly built the project to market, not only solve the housing needs for thousands of people. but also contribute to change the appearance of urban HCMC.
For example, from the Western Plaza Project invested by Binh Chanh Construction Investment Joint Stock Company, although the foundation was completed in 2012, but because of lack of capacity to implement, the project was covering blankets since then. Recently, Hung Thinh has paid VND 426.5 billion to buy this project and build it, which is currently under construction.
Last time, the real estate market in Ho Chi Minh City witnessed the “name change, change the owner” quite strong. There have been concerns that acquisitions would distort the real estate market as some investors hugged too many projects to get away rather than deploy.
But according to expert analysis, these are necessary and indispensable transfers, helping the real estate market develop better and especially solve the inventory is still quite large.
According to Le Hoang Chau, Chairman of the HCMC Real Estate Association, starting in late 2013, when the real estate market recovered to date, hundreds of projects have been “revived” through M & A deals. However, up to now, more than 500 projects in Ho Chi Minh City are being suspended. The overwhelming array of projects not only made real estate inventories soar, cash flow cluttered, but also the appearance of urban sprawl.
“If there are no really professional enterprises, there will be no urban areas, projects will be developed in a uniform way,” Chau said, and evidence, many years ago, Ho Chi Minh City. Many projects have been “blanket” for years, but the transfer of the market has turned the project “blanket” into the modern residential.
With the view of the insider, Mr. Nguyen Dinh Trung, Chairman of Hung Thinh Group said that the stronger M & A activities will contribute to create a stable development for the real estate market in particular and also the economy in general.
M & A activity can be interpreted as the transfer of projects from unprofessional or unprofessional enterprises to professional, financially viable firms to implement, avoiding project status. the projected increase, inventory increase. Most of the real estate projects are burdened with big bank debts and potentially bad debts for credit institutions.
When these projects restart, there is liquidity back, the banking system and the economy will remove a large amount of bad debt. Thus, it can be said, M & A has been “fuze” contributing to the flow of the economy.