Taseco Land solves cash flow problem for 1,000-hectare land fund ambition

Despite setting a cautious profit plan for 2025, Taseco Real Estate Joint Stock Company (Taseco Land) continues to pursue an ambitious expansion strategy - spending heavily on land funds, simultaneously starting large-scale projects, but has not increased its charter capital and has not issued bonds.

At the 2025 annual shareholders' meeting, Taseco Land's board of directors said the company will continue to spend heavily to buy more land and simultaneously implement many new projects, including urban areas, social housing and industrial parks.

“We plan to expand by another 350 hectares in 2025,” said Nguyen Minh Hai, General Director of Taseco Land. “The goal is to reach a total land fund of 1,000 hectares this year.”

Last year, Taseco Land expanded its land fund by 94.36 hectares, bringing the total accumulated area to 648 hectares. 

This year's expansion plan includes auctions, bidding and investor recognition for projects in Hanoi, Hai Phong, Bac Ninh, Thai Nguyen and Hung Yen. 

Land use fees for 2025 alone are estimated to exceed VND4,000 billion, excluding development investment costs.

Taseco Land leaders voted to approve important reports on the 2025 business plan and elected a new board of directors. Photo: DNCC

Cash flow balance

Taseco Land currently has equity of nearly VND3,000 billion and will have to solve the problem of balancing capital while still wanting to simultaneously implement six major projects this year, including Trung Van, Long Bien and Me Linh in Hanoi; Duy Tien in Ha Nam and a resort in Da Nang.

Unlike many other real estate companies, Taseco Land does not choose to issue shares or bonds to raise capital. Instead, the company relies on bank loans and cash flow from existing projects.

“We have no plans to issue bonds,” said Pham Ngoc Thanh, Chairman of the Board of Directors. “We are working with partner banks to ensure loan limits with reasonable interest rates.”

By the end of 2024, the company's financial debt will reach about VND3,500 billion. Total assets will be VND9,344 billion, of which inventories will account for 44%, equivalent to nearly VND4,100 billion - most of which is investment costs in developing projects.

Company leaders affirmed that cash flow from these projects will help balance capital needs and debt repayment during the implementation phase.

Major projects such as Dong Van 3 Industrial Park are expected to contribute about VND1,300 billion in revenue this year. Project No. 4 in Thanh Hoa, with an inventory value of VND1,600 billion, is expected to bring in more than VND1,200 billion. Several other projects such as Nguyen Binh and Long Bien are also being offered for sale and are expected to contribute nearly VND1,000 billion in revenue this year.

Taseco Land is moving its shares from UPCoM to Ho Chi Minh City Stock Exchange by the end of this year, aiming to increase liquidity and attract institutional investors.

“We plan to retain only 51% of the shares, the rest will be reserved for strategic partners, including foreign investors,” Mr. Thanh added.

Selective strategy, not quantity

In response to concerns from shareholders about the liquidity of projects in the context of the real estate market still recovering slowly, especially in the resort segment, the company's management said they are pursuing a selective and long-term strategy.

“We do not spread our investments,” Mr. Thanh emphasized. “The projects are carefully selected, focusing on locations with real exploitation potential.”

In the resort sector, Taseco Land has only implemented two projects: one in Quang Binh and a resort in Da Nang, which was acquired from a Japanese investor. “There were partners who offered double the initial purchase price, but we refused because we believed in the long-term value,” Mr. Thanh shared about the project in Da Nang.

Source:  https://theleader.vn/