Novaland acquires company for $83m
Novaland acquires company for $83m
Housing giant Novaland Group is all set to acquire 99.99 per cent of Gia Duc Real Estate Company Ltd for over VND1.9 trillion (US$83 million).
NVL said the acquisition is meant to advance its plan to enlarge its land holding, which would help it achieve its targets for next year.
By acquiring Gia Duc, Novaland will also get a stake in the Sunrise Bay project, a 181ha-complex of urban area, amusement and commercial centres in Hai Chau District of Da Nang City. Its developer is the Sunrise Bay Company Ltd.
Gia Duc owns a 19 per cent stake in the complex.
Gia Duc was established in February 2016 with a registered capital of VND20 billion and two shareholders.
Novaland is one of the contractors for the project, responsible for construction, quality management and supervision and completing legal procedures for the construction.
Novaland this year targets net profit of VND3.1 trillion ($136 million) on sales of VND17.5 trillion (US$767 million).
Last year they had respectively been VND1.7 trillion ($74.5 million), a 276 per cent rise, and VND7.4 trillion ($324 million), up 10.3 per cent.
Novaland has 40 projects on hand in many segments like villas, houses, apartments, office-tel, and land plots.
