Phat Dat Real Estate Development JSC (stock code: PDR) announced the potential sale late last week. The company has tasked chairman Nguyen Van Dat with finding a buyer and negotiating a selling price no lower than the book value.

Ngo May was established in late 2019, after Phat Dat won a bid for a 5,200+ square meter land plot on Ngo May Street in Quy Nhon City, Binh Dinh Province, for 127 billion VND.

In mid-2022, Phat Dat broke ground on the Cadia Quy Nhon project on this site, calling it a key project and their gateway into the resort real estate market. Initially slated for completion in late 2025, the project experienced delays and was renamed Q1 Tower.

In a recent disclosure, Phat Dat expressed optimism about meeting sales conditions this year. The updated project scope includes two 40-story towers with 864 serviced apartments, 362 hotel rooms, and shophouses.

Phat Dat’s first-quarter financial report showed nearly 309 billion VND in inventory for this project, mostly land auction payments to the state budget, and design, consulting, survey, and construction costs. During a bond issuance last year, Phat Dat loaned 388 billion VND of the 1.128 trillion VND raised to Ngo May.

The Q1 Tower project site in late 10/2024. Photo: Phat Dat Website

The Q1 Tower project site in late 10/2024. Photo: Phat Dat Website

Phat Dat aims for 3.3 trillion VND in revenue this year, including financial revenue and proceeds from divesting stakes in subsidiaries. Pre-tax profit is projected at 910 billion VND, and after-tax profit at 728 billion VND, both the highest since 2022.

Management believes that the real estate market will recover this year, and recent legal changes will help the company and its peers quickly resume stalled projects. Phat Dat says it is finalizing preparations to launch a project in Thuan An (Binh Duong) and continue sales at its Quy Nhon (Binh Dinh) project.

Phuong Dong