Trillions of money flow of new owners poured into Ba Son – [Underground M&A]

In the last days of August, two legal entities owning 6 land lots in Saigon - Ba Son Complex simultaneously increased capital by trillions of dong. This move comes after the two units have just completed the merger of companies that own land plots in the Saigon - Ba Son Complex quietly.

[M&A underground wave] Trillions of new owners' cash flow poured into Ba Son

According to the 1/500 planning project in 2015, the Saigon - Ba Son Complex Center, invested by Ba Son Corporation, has a total area of 25.29 ha, divided into three groups.

In which, the group of service works includes two lots TH1 (2,003 m2) and TH2 8,832 m2; mixed housing group, including apartments, commercial services – and serviced offices (officetel) has 6 lots: HH1 (8,999 m2), HH2 (3,826 m2), HH3 (2,899m2) , HH4 (13,308 m2), HH5 (7,343 m2), HH6 (15,492 m2); low-rise housing group includes 5 lots: O1 (3,775 m2), O2 (3,775 m2), O3 (3,775 m2), O4 (3,775 m2) and O5 (1,885 m2).

On April 14, 2016, the People's Committee of Ho Chi Minh City announced that it had approved for Ho Chi Minh City Investment, Trade and Services Joint Stock Company (Vincentra HCM) to invest in the Saigon - Ba Son Complex Center with a total investment of nearly 30,000. billion.

By the fourth quarter of 2016, Vincentra HCM separated 8 land lots from this grand project for new legal entities to own, including 7 land plots with residential functions including HH1 (8,999.3 m2), HH2 (3,825,5). m2), HH3 (2,899 m2), HH4-1 and HH4-2 (6,167.2 m2), HH4-3 (7,141.3 m2), HH5-1 (3,558 m2) and VP2 office space ( 6,042 m2).

Details of new legal entities:

1. HH1 was assigned to Phuong Nam Urban Development and Investment JSC
2. HH2 was assigned to Au Lac Development and Business Investment JSC
3. HH3 was assigned to Nam Thanh Urban and Commercial Development JSC
4. HH4 is divided into small backpacks: HH4-1 and HH4-2 are assigned to Phuc Thanh Investment Development and Trading Joint Stock Company; HH4-3 was assigned to Binh Minh Business Investment and Development JSC.
5. HH5-1 was assigned to Thuong JSCHai Binh Trading and Investment Development.

This area was expected to become a great construction site with the most expensive buildings in Saigon. However, for unknown reasons, projects in this area so far have mostly remained dormant.

The owners of the above plots have also continuously changed hands quietly. For example, Lot HH5-1 has been handed to Alpha King and this Hong Kong enterprise deploys the Centennial Saigon project. Recent information shows that the transfer of component projects in Ba Son area is still taking place quietly.

Trillions of money silently poured into Ba Son

Specifically, on February 11 and 12, Supreme Real Estate Investment Joint Stock Company and Elegance Real Estate Investment Joint Stock Company merged many companies that are investors of land plots HH1, HH2, HH3, HH4- 1, HH4-2 and HH4-3 belong to Saigon - Ba Son Complex (No. 2 Ton Duc Thang, District 1, HCMC).

Before merging with Supreme, Vikhareal was once poured 4,000 billion VND by Norah Interior Design and Decoration JSC (with interest) to cooperate in project investment.

The above trillions of dong were issued by Norah for two lots of bonds for Dien An Phat Investment JSC (VND 500 billion) and Vietnam Infrastructure and Real Estate Development JSC (VIPD, VND 3,000 billion) at the end of 2018.

Norah paid off 500 billion dong of bonds at the end of October 2019 and settled the remaining 3,000 billion dong of bonds at the beginning of February 2020.

Earlier in the first half of 2017, Vikhareal acquired all shares of Nam Thanh Urban and Commercial Development Company Limited, the owner of lot HH3, thereby acting as the investor of this project.

In which, Supreme merged three units including DPV Hanoi Investment Company Limited (owning lot HH1, 8,999.3 m2), a business related to Mr. Kieu Huu Dung, Chairman of KDI Holdings, Company Thanh Cong Investment Limited (owns lot HH2, 3,825.5 m2) and Vikhareal Investment Company Limited (owns lot HH3, 2,899 m2). At this time, Supreme's charter capital increased from VND 1,016 billion to VND 1,836 billion.

And Elegance merged Dai Phat Invest Co., Ltd. (owns two lots HH4-1 and HH4-2 with a total area of 6,167.2 m2) and Truong Viet Invest Co., Ltd. (owns lots HH4-3, 7,141.3 m2) ). At the same time, the charter capital of Elegance also increased from 855 billion VND to 1,635 billion VND.

Thus, 6/8 land plots in Saigon - Ba Son are officially owned by two real estate businesses with very strange names in the market: Supreme and Elegance.

Although just established in the middle of 2019, the couple has continuously increased their charter capital to over ten trillion dong. The latest on August 20 and 21, the Supreme and Elegance couple raised their charter capital at the same time. In which, Supreme increased its capital from 1,836 billion dong to more than 5,636 billion dong, while Elegance increased its capital from 1,635 billion dong to 4,935 billion dong.

More than 7,000 billion VND poured into Saigon - Ba Son area

More than 7,000 billion VND poured into Saigon - Ba Son area

Latest developments, on July 10, Capitaland Tower Co., Ltd., a legal entity related to Van Thinh Phat Group, which owns a land area with VP2 office function of 6,042 m2 (trade name). The project's project is The Sun Tower, formerly known as Landmark 60 Bason) signed a deposit contract to transfer this land to Ho Chi Minh City Service and Trade Joint Stock Company (Setra).

New investors at The Sun Tower, Ba Son area mobilized VND 3,750 billion in bonds

Similar to Supreme and Elegance, the name Setra also causes a lot of curiosity for investors. Because, the information about the boss is secret and the source of money behind this business is still unknown.

An interesting detail is that not long after signing a deposit to receive the project, on July 31 and August 1, Setra issued 31 lots of bonds with a total value of VND 3,750 billion. The collateral is most likely the deposit contract to receive the transfer of the project mentioned above.

As for the remaining HH5-1 land, this land was previously invested by Hung Phat Invest Hanoi Co., Ltd. After that, Minh Huy Land Investment Company Limited owned this land by holding 100% (more than 3,070 billion VND) of capital of Hung Phat Invest Hanoi.

According to research, Minh Huy Land used to cooperate with Thao Dien Investment JSC, now a Group JSC Masterise Homes (Masterise Group) at Thao Dien project Masteri, Thao Dien Ward, District 2, HCMC.

It can be seen that the recent mergers and acquisitions of capital at intermediary legal entities holding the ownership of land plots at the Saigon Ba Son Complex partly show that M&A activities are taking place. whispering in the real estate market through private capital arrangements.

Coincidentally, all 8 land plots in the Saigon - Ba Son Complex and the shares owned by shareholders in Supreme and Elegance are mortgaged at Vietnam Technological and Commercial Joint Stock Bank (Techcombank).

At present, The Sun Tower is the first project in 8 land plots in Ba Son area to be restarted after new cash flows in. This project has basically completed the construction of the podium. With what is going on, it seems that the big bosses behind the deals are ready to bring Ba Son back into the game.

Source : vietnambiz.vn