Instead of cash, Hoa Phat will contribute capital to Song Hong Future Group using its shares in Hoa Phat Real Estate Development Company, valued at 32,000 VND per unit.

Following the transaction, billionaire Tran Dinh Long’s group will reduce its ownership in Hoa Phat Real Estate from 99,9% to 76,4%. Concurrently, the steel company will acquire a 20,2% stake in Song Hong Future.

This strategic move aligns with Hoa Phat’s expanding investment in real estate projects. Beyond its capital contribution to Song Hong Future Group, the conglomerate is also part of a consortium undertaking the Song Hong Landscape Boulevard project in Hanoi. This project encompasses a land area of approximately 11,418 hectares, with a preliminary total investment estimated at 736,963 billion VND.

Currently, the real estate segment accounts for a small portion of Hoa Phat’s revenue. Its Q1 report indicated that real estate contributed only 1% to total revenue, while steel production remained the primary segment at 96%.

Inside a Hoa Phat steel plant. Photo: HPG

Song Hong Future Group, the developer of the multi-purpose urban area in Thu Lam and Dong Anh communes, was established in November 2025. Its primary business is real estate. The project spans approximately 696 hectares and includes three land plots located within different urban sub-zones.

Tran Dang Khoa, born in 1970, serves as the company’s Chairman and legal representative. Mr. Khoa also holds the position of Chairman at Dai Quang Minh, a real estate company within the Thaco ecosystem, and leads the consortium responsible for the Song Hong Landscape Boulevard project.

Before Hoa Phat’s capital contribution, Song Hong Future Group had a charter capital of 12,800 billion VND. After this additional share issuance, Song Hong Future’s capital will increase to 39,450 billion VND, tripling its current amount.

Trong Hieu