On 7/9, Ho Chi Minh City Development Bank (HDBank) issued a decision to seize and liquidate collateralized assets to recover a debt from Hoang Quan Consulting - Trading - Service Real Estate Joint Stock Company.
The seized assets are collateral linked to credit agreements HDBank extended to the company starting early 2024. Hoang Quan Real Estate's semi-annual financial report indicates the company had an outstanding debt of approximately VND 895 billion with HDBank as of the end of the second quarter this year.
The assets designated for seizure comprise 26 land plots in TP HCM, totaling over 3,660 square meters.
Specifically, four plots are part of the SaiGonRes project in ward 7, district 8, with individual areas ranging from 200 to 290 square meters, totaling 1,000 square meters.
Additionally, 14 plots are situated within the Phu Loi residential area, ward 7, district 8, most of which measure 120 square meters each. The remaining eight land plots are located in Phu Huu ward, district 9, each spanning 126 square meters.
Beyond the land plots, the collateral further encompasses all assets, property rights, and any existing or future rights and benefits derived from the investment and operation of the villa and apartment housing project in Thanh My Loi ward, district 2 (now part of Cat Lai ward, TP HCM). This excludes 35 apartments and four villas that have already been sold, transferred, leased, or exchanged.
HDBank plans to commence asset seizure on 25/9 and will continue until Hoang Quan fully settles its debt.
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One of Hoang Quan's social housing projects in Binh Chanh, TP HCM. *Photo: HQC*
Hoang Quan Real Estate primarily operates in the real estate sector and was previously recognized as a major player in the social housing segment. However, in recent years, the company has consistently fallen short of its business targets.
The company's leadership previously attributed this to overly ambitious targets and implementation plans heavily reliant on anticipated cash flow from ongoing projects.
For this year, HQC aimed for VND 1,200 billion in revenue and VND 120 billion in pre-tax profit. However, after the first half, the company reported just over VND 70 billion in revenue and nearly VND 16 billion in pre-tax profit, reaching only 13% of its annual profit target.
Quynh Trang
