Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land) today finalized a plan to issue nearly 186 million shares to swap for shares in Thanh Thanh Nam Company. Following the transaction, TTC Land will own 99.6% of the capital, thereby successfully integrating it as a direct subsidiary.

Thanh Thanh Nam is a company within the ecosystem of Thanh Thanh Cong Group, owned by Dang Van Thanh and Huynh Bich Ngoc. Its charter capital was nearly 850 billion VND by the end of last year, with total assets approximately 1.300 billion VND.

Regarding the reasons for this transaction, Nguyen Thanh Chuong, Chairman of TTC Land's Board of Directors, stated that Thanh Thanh Nam's core business is office and commercial space leasing. After integrating this business, TTC Land's total leasable floor area is expected to increase by 42,000 m2, reaching 208,000 m2.

According to Chuong, the current business methods and competitive landscape in the real estate sector have changed significantly, necessitating a new direction for the company to build a foundation for residential development. The company believes real estate leasing will be a stable business segment for the next 5-10 years, ensuring a steady cash flow that makes them insulated from abnormal fluctuations in the real estate market.

"To put it simply, real estate leasing helps us cover our daily needs, while commercial housing is for long-term wealth creation", Chuong shared with shareholders at the annual meeting on the morning of 23/4.

The head of the Board of Directors added that, in addition to leasing offices and commercial spaces, Thanh Thanh Nam also operates rest stops to diversify its revenue streams. This month, the company opened its first rest stop on the Phan Thiet - Vinh Hao expressway, with plans to develop nine more stations (corresponding to 18 points) this year.

Nguyen Thanh Chuong addressing shareholders at the annual meeting on the morning of 23/4. Photo: TTC Land

Responding to a shareholder's question about potential dilution from issuing additional shares to acquire Thanh Thanh Nam, Chuong repeatedly emphasized that the leadership would only proceed if the transaction created long-term value, stabilized cash flow, and improved asset quality. The company will not sacrifice financial safety for short-term growth.

TTC Land is the flagship unit in the real estate sector for Thanh Thanh Cong Group and is currently listed on the TP HCM stock exchange. Last year, it generated over 1.227 billion VND in revenue, one and a half times that of the same period and its highest in five years. Pre-tax profit also nearly doubled, reaching 97 billion VND.

The company aims for 1.275 billion VND in revenue and 100 billion VND in pre-tax profit this year, a slight increase from the previous year. Explaining the cautious growth target, Chuong noted that this plan does not yet account for potential contributions from projects currently completing legal procedures.

The leadership acknowledges facing two major issues. First, the company holds valuable assets that have not yet been converted into revenue due to legal hurdles. Second, the company's current development cycle depends less on market conditions and more on the progress of removing bottlenecks. The company expects two to three projects to have their legal issues resolved and resume implementation this year.

"TTC Land's business results are not yet at their best, but everything is on track. We are accumulating assets, resolving legal matters, and expanding leasing operations to prepare for a new cycle", Chuong reassured shareholders.

Phuong Dong