Novaland's office in An Phú Ward, District 2, HCM City. Photo baodautu.vn

HÀ NỘI — Novaland Group (NVL) has just approved a resolution related to increasing capital in subsidiaries and mobilising money through bond channels.

The real estate developer plans to pour another VNĐ500 billion (US$21.8 million) into The Prince Residence JSC. The capital will be taken from the bond mobilisation approved by the Board of Directors in Resolution 26. The deal will be executed in the first half of 2022. After that, the total ownership of Novaland in the company is 99.928 per cent of the capital.

It also agreed to issue more bonds to mobilise a maximum of VNĐ1.5 trillion (US$65.6 million) with the collateral being NVL shares. 

Money from the issuance is expected to be spent on The Prince Residence. Correspondingly, Novaland’s total ownership in the company will increase to 99.964 per cent of capital.

At the end of 2021, Novaland invested more than VNĐ430 billion in The Prince Residence.

The Prince Residence is the investor of the project of the same name in Phú Nhuận District, HCM City, and is also the parent company with a 70 per cent stake in Aqua City Co. Ltd., the investor of Novaland's key project in Đồng Nai. 

Novaland has continuously raised capital through the bond channel recently, with the collateral being NVL shares, to invest in land fund expansion and participate in many projects.

Earlier this year, a joint venture between Novaland and Đất Tâm Investment JSC attracted investors' attention. The joint venture had held a meeting to report the idea of ​​planning the area of ​​Đắk Glong District and Tà Đùng National Park, Đắk Nông Province, with the intention to build a large-scale tourism site. 

The project has an area of about 23,500 hectares with seven subdivisions equipped with utilities and accommodation chains. The joint venture said that this would be one of the key projects with a unique cluster of golf courses on the mountain.

Novaland also has just approved the establishment of a subsidiary, Novaland Đất Tâm Real Estate Investment Company Limited, in the form of a limited liability company with two or more members.

The estimated charter capital is VNĐ100 billion, of which, the group will contribute VNĐ51 billion, equivalent to 51 per cent of the capital. VNS