Taseco Land plans to borrow over VND 1,900 billion to develop an urban project in Thai Nguyen

Accordingly, Taseco Land will borrow and pledge assets at the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) – Transaction Office 1 branch, with a proposed credit limit of VND 1,925 billion to carry out the investment project of the New Urban Area and Central Pedestrian Street in Trung Vuong Ward, Thai Nguyen City, Thai Nguyen Province (hereinafter referred to as the project).

Of this amount, the loan for payment of legal and valid expenses, issuance of guarantees, and opening letters of credit (LC) will be up to VND 1,425 billion, but not exceeding 58.1% of the total investment capital of the above-mentioned project invested by Taseco Land. Specifically, payment for the winning bid of land use rights and attached assets will be up to nearly VND 1,094.2 billion; payment for legal and valid expenses, issuance of guarantees, and opening LCs for the construction investment of the project will be up to more than VND 330.8 billion.

The remaining VND 500 billion will be used to provide guarantees for the sale and lease-purchase of housing formed in the future. The loan term is up to 42 months from the day following the first disbursement. The interest rate will be applied according to the bank’s regulations.

The loan will be secured by Taseco Land’s assets, consisting of all assets formed from the New Urban Area and Central Pedestrian Street project in Thai Nguyen City.

The loan will also be secured by third-party assets, including property rights (including but not limited to: management rights, commercial operation rights, and other related property rights) arising from the Landmark55 luxury hotel project located on plot B3-CC2B of the Tay Ho Urban Center Project – Phase 1, in Co Nhue 1 Ward and Xuan Tao Ward, Bac Tu Liem District, Hanoi, which is developed by Taseco Invest Joint Stock Company (a subsidiary of Taseco Land); and 49 million TAL shares owned by Taseco Group Joint Stock Company.

Regarding the project in Thai Nguyen, Taseco Land recently won the auction for a 2.23-hectare commercial-service land parcel (part of the total 6.6-hectare area of the New Urban Area and Central Pedestrian Street Project in Thai Nguyen City) on April 26, 2025, at a price of over VND 1,367 billion, approximately VND 30 billion higher than the starting price (VND 1,337 billion).

Accordingly, the company will develop the entire technical infrastructure for the New Urban Area and Central Pedestrian Street Project in Thai Nguyen City, covering an area of more than 6.6 hectares. The project will include components such as a pedestrian street; a one-story basement structure for parking integrated with commercial-service facilities; and terraced houses.

After completing the project investment, the investor will retain the residential properties attached to the land for commercial purposes, while the entire technical infrastructure, social infrastructure, pedestrian street, and basement facilities will be handed over to competent authorities or organizations for management and use in accordance with regulations.

Business Performance of Taseco Land

In the first quarter of 2025, Taseco Land (TAL) recorded nearly VND 376 billion in revenue, up 21% year-over-year, primarily driven by real estate transfer activities which contributed VND 324 billion—an increase of 2.4 times. After-tax profit reached VND 22.3 billion, doubling the same period last year, although interest expenses rose sharply to nearly VND 39 billion.

For the full year, TAL has set a consolidated revenue target of VND 4.3 trillion and after-tax profit of VND 536 billion. After the first three months, the company had fulfilled only 9% of its revenue plan and 4% of its annual profit target.

As of the end of March, total assets reached VND 9.56 trillion, a slight increase compared to the beginning of the year. Of this, TAL had approximately VND 5.17 trillion in liabilities, up 1%, with the majority being bank loans amounting to VND 3.175 trillion—down 4% but still accounting for 63% of total liabilities.

Recently, Taseco Land has shown continuous expansion efforts, most notably by approving a resolution to contribute capital in order to establish its 14th subsidiary, tentatively named Taseco Ha Nam Investment Co., Ltd., headquartered in Phu Ly City.

Specifically, according to the Board of Directors' resolution dated May 19, TAL intends to contribute VND 576 billion to the new subsidiary, equivalent to 80% of its charter capital. The total charter capital of Taseco Ha Nam will be VND 720 billion. This capital contribution will come from the company's operating funds.

Taseco Ha Nam is the second subsidiary established in 2025, following Taseco Hai Phong Industrial Park JSC, which was founded in March with a charter capital of VND 300 billion, of which Taseco Land contributed VND 210 billion. With the VND 576 billion capital contribution, Taseco Ha Nam will become one of Taseco Land’s largest subsidiaries, behind only Taseco Invest and ICON4.

By the end of March, TAL’s total investment in its subsidiaries had reached nearly VND 2.8 trillion, equivalent to approximately 30% of the parent company’s total assets. The investment in Taseco Ha Nam demonstrates TAL’s ongoing strategic focus on expanding operations in this region.

While specific details of the new subsidiary’s project have not been disclosed, Ha Nam remains a key area in TAL’s investment strategy. In Duy Tien Town, the company is the investor of the New Urban Area Project in the Southern Administrative Center, covering 115 hectares, with a total estimated investment of over VND 4.7 trillion. The project aims to develop a multifunctional urban area with high-end housing, commercial, service, and public utility products.

Concurrently, also in Ha Nam, TAL is implementing its first industrial real estate project—Dong Van III Supporting Industrial Park, located east of the Cau Gie–Ninh Binh expressway. The project covers 223 hectares, with a total investment of approximately VND 2.4 trillion.

Sources: https://cafef.vn/