The APEC group will mobilize 50,000 – 100,000 billion to build 10 million “5-star social housing” apartments

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Asia Pacific Securities Joint Stock Company (Code: APS) will be the exclusive distributor of financial resources for Happy City (AHC) – an enterprise that plans to build 10 million social housing units across the country with an estimated capital of about 50,000 – 100,000 billion VND.

APEC Group (APEC Group) has officially launched the 5-star Vietnam Social Housing Development and Investment Corporation – Happy City (AHC).

Accordingly, this enterprise has an initial charter capital of VND 10,000 billion, including 4 founding shareholders: APEC Group, IDJ Vietnam Investment Joint Stock Company (Code: IDJ); Asia Pacific Securities Joint Stock Company (Code: APS) and Asia Pacific Investment Joint Stock Company (Code: API).

The goal of establishing a business is to invest in 10 million 5-star social housing houses with the Happy City brand across the country in the period of 2021 – 2030. “This will be a great revolution for Vietnam’s social housing” , said Mr. Nguyen Quang Huy, Deputy General Director of Apec Group.

In terms of scale, Mr. Huy said, the enterprise will develop projects mainly in Hanoi, Ho Chi Minh City and centrally-affiliated cities and provinces with large industrial parks.

Particularly in Hanoi and Ho Chi Minh City, urban areas will have a scale of 100-300 hectares with the selling price of 12-18 million VND/m2. Other provinces and cities have a scale of 50-100 hectares with a selling price of 8-14 million VND/m2.

It is expected that the capital contribution to AHC will be divided into 3 phases. Phase 1 will close the list of shareholders on November 31, 2021, phase 2 is December 31, 2021 and phase 3 is January 31, 2022. The company is expected to list HOSE with code APH at the end of the third quarter or the beginning of the fourth quarter of 2022.

The offering price is not lower than 20,000 VND/share. APEC internal shareholders can buy at the price of 12,000 VND/share; Strategic shareholders can buy at a price not lower than 15,000 VND/share.

Specifically, shareholders holding 100 shares of APS can buy 1,000 shares of AHC; shareholders holding 100 IDJ shares can buy 2,000 AHC shares; shareholders holding 100 API shares can buy 3,000 AHC shares; shareholders holding 100 shares of CSC can buy 4,000 shares of AHC.

In 2022, the enterprise is expected to increase its private capital of VND10,000 billion to VND 20,000 billion. Accordingly, Asia Pacific Securities JSC (Code: APS) will be the exclusive distributor of financial resources for AHC, including the first capital increase of VND 10,000 billion, the second phase of VND 20,000 billion and the capital arrangements to invest in 5-star social insurance urban areas across the country with a total expected investment of about VND 50,000-100,000 billion.

Mr. Nguyen Do Lang, Chairman of the Board of Directors of APEC Group. (Screenshots).

“We don’t ask for money, we just need a mechanism. I think 5,000 hectares for Hanoi is a very small number, so is Ho Chi Minh City. While industrial park land has up to 100,000 hectares. If Hanoi and Ho Chi Minh City only needs to convert 10% of industrial land to urban land, it will solve the housing problem for all people in these two cities and there will be no more squalid slums,” he said. Nguyen Do Lang, Chairman of the Board of Directors of APEC Group commented.

Mr. Lang also said that if the business does well, EPS is expected to reach 1,500-2,000 dong, if it does better, it can reach 2,500-3,000 dong.

Previously, the proposal to build 10 million cheap 5-star social houses was submitted by APEC Group to the Prime Minister.

The Ministry of Construction is collecting comments on a draft decision on a national housing development strategy for the period of 2021 – 2030, with a vision to 2040.

Accordingly, the whole country strives to develop, renovate and repair houses in the period of 2021 – 2030 to reach more than 1 billion m2, equivalent to about 11.9 million houses. The goal is that by 2025, the per capita housing area will reach about 27 m2 of floor/person, by 2030 it will reach about 30 m2 of floor/person. Vision to 2040, this number will reach about 36 m2 of floor/person.

In the period of 2021-2025, the whole country strives to invest in building about 222,500 social housing houses to meet about 890,000 low-income people in urban areas; about 163,500 accommodation houses to meet about 654,000 workers working in industrial parks and export processing zones.

Source: vietnambiz.vn – Translated by fintel.vn