[M&A underground wave] Cash flow of trillion of new owners poured into Ba Son

5 min read

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

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 hectares, divided into three groups.

In which, service works group includes two lots TH1 (2,003 m2) and TH2 8,832 m2); Mixed housing group, including apartments, commercial services – and service offices (officetel) with 6 plots: HH1 (8,999 m2), HH2 (3,826 m2), HH3 (2,899m2) , HH4 (13,308 m2), HH5 (7,343 m2), HH6 (15,492 m2); The 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 the Ho Chi Minh City Investment and Trade Services Joint Stock Company (Vincentra HCM) to invest in the Saigon – Ba Son Complex Center Area with a total investment of nearly 30,000 billion.

By the fourth quarter of 2016, Vincentra HCM has separated 8 plots of land from this grand project for new legal entities to own, including 7 functional residential land plots 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 land with office function VP2 ( 6,042 m2).

Details of new legal entities:

HH1 was assigned to Phuong Nam Urban Development and Investment JSC

HH2 was assigned to Au Lac Business Investment and Development JSC

HH3 was assigned to Nam Thanh Urban and Commercial Development Joint Stock Company

HH4 is divided into small backpacks: HH4-1 and HH4-2 are assigned to Phuc Thanh Trading Investment and Development JSC; HH4-3 was assigned to Binh Minh Business Investment and Development JSC.

HH5-1 was assigned to Hai Binh Trading and Investment Development Joint Stock Company.

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 are still mostly stationary so far.

And the owners of the above lots have also continuously changed owners silently. For example, the batch of HH5-1 went to Alpha King and this Hong Kong enterprise deployed the Centennial Saigon project. Recent information shows that the transfer of component projects in the Ba Son area is still quietly taking place.

Cash flow of trillion 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 lots HH1, HH2, HH3, HH4- 1, HH4-2 and HH4-3 belong to Saigon – Ba Son Complex (2 Ton Duc Thang, District 1, HCMC).

Before merging with Supreme, Vikhareal was 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 to two lots of bonds for Dien An Phat Investment Joint Stock Company (500 billion dong) and Vietnam Real Estate and Infrastructure Development Joint Stock Company (VIPD, 3,000 billion dong) at the end of 2018.

Norah has paid off 500 billion dong of bond by the end of October 2019 and the remaining 3,000 billion dong of bond has been settled by the beginning of February 2020.

Previously, in the first half of 2017, Vikhareal acquired all shares of Nam Thanh Urban and Trade Development Co., Ltd., the owner of HH3 block, thereby as the investor of this project.

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

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

Thus, 6/8 land plots in Saigon – Ba Son are officially owned by two real estate companies 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 tens of trillion dong. Latest on August 20 and 21, the pair Supreme and Elegance simultaneously increased charter capital. In which, Supreme raised capital from 1,836 billion VND to more than 5,636 billion VND, while Elegance increased capital from 1,635 billion VND to 4,935 billion VND.

Hơn 7.000 tỉ đồng đổ về khu Sài Gòn - Ba Son - Ảnh 2.

(Source: Nguyen Ngoc compiled)

Hơn 7.000 tỉ đồng đổ về khu Sài Gòn - Ba Son - Ảnh 3.

(Source: Nguyen Ngoc compiled )

The latest development, on July 10, Capitaland Tower Co., Ltd., a legal entity related to Van Thinh Phat Group, which owns the land with office function of VP2 is 6,042 square meters (trade name The Sun Tower, formerly known as Landmark 60 Bason) has signed a deposit contract to transfer this land to Ho Chi Minh City Trading and Service Joint Stock Company (Setra).

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

One remarkable detail was that not long after signing the deposit to receive the project, on July 31 and August 1, Setra issued 31 bond lots with a total value of 3,750 billion dong. The collateral is more likely to be a deposit contract to receive the transfer of the above project.

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 dong) capital of Hung Phat Invest Hanoi.

According to research, Minh Huy Land used to cooperate with Thao Dien Investment JSC, now Masterise Group JSC (Masterise Group) at Thao Dien Masteri project, Thao Dien ward, district 2, Ho Chi Minh City.

It can be seen that mergers and capital transfer deals at intermediary legal entities holding ownership of lands in the Sai Gon Ba Son Complex in recent times partly show that M&A activities are taking place. Silently in the real estate market through secret capital arrangements.

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

Currently, The Sun Tower is the first project in eight land plots in the Ba Son area to be restarted after the new cash flow flows. This project has basically completed the construction of the podium. With what’s going on, it looks like the big bosses behind the deals are ready to bring Ba Son back in.

Source: vietnambiz.vn – Translated by fintel.vn