HA NOI (VNS)— Property developer VinGroup (VIC) said it was commited to delivering 8,000 apartments in the Royal City and Times City projects in Ha Noi this year despite low demand given the sluggish real estate market.
At the company's annual meeting of shareholders on Saturday, VinGroup chairman Pham Nhat Vuong said VinGroup would not reduce the prices of their apartments as had other companies, but would keep the old prices to protect the interests of the customers who had purchased their apartments.
"There are many ways to raise capital given difficult conditions, so slashing apartment prices when the market is in a downturn can affect other clients' interests," Vuong said.
The Times City project has completed the first phase with 12 towers, nine of which have been sold while the other three are still not open for sale.
VinGroup also plans to launch its two major shopping malls in Ha Noi this year, Vincom Mega Mall Royal City in July and Vincom Megal Mall City Times in December, while seeking new promising projects in Ha Noi, HCM City, Nha Trang and other localities for investment.
"There will be many opportunities for investors with cash in the current context," Vuong said.
Last year, VIC's net revenue was over VND7.9 trillion (US$376.2 million), an increase of 242 per cent over the previous year. Its after-tax profit also jumped 72 per cent over 2011, totalling nearly VND1.85 trillion ($88.1 million).
In the financial sector, VinGroup successfully issued international convertible bonds worth $300 million while attracting another $200 million from the global private equity fund Warburg Pincus into Vincom Retail.
This year, VIC projects planned to earn a pre-tax profit of around VND10 trillion ($476.2 million) and to have net revenue of VND12.2 trillion ($581 million). The group has also approved a plan for debuting shares overseas through an initial public offering on an international stock exchange in the future.
Two foreigners were elected to VIC's board of directors during this meeting. They were Joseph Raymond Gagnon, managing director at Warburg Pincus, and Marc Villers Townsend, managing director at CBRE Vietnam, an independent board member.
VIC shares rose slightly yesterday, closing at VND70,000 ($3.33) a share. — VNS