After nearly a year of quiet on the real estate market, Novaland is showing signs of returning to the track as it hires recruiting staff and plans to launch new projects.
The Novaland Group recently announced the recruitment of up to 700 employees. In particular, recruiting more than 20 senior personnel positions are the Directors of the key sectors such as project management, project management, marketing, capital, investment, hotel management, human resources … dozens Head of department, manager in fields and 500 sales in all provinces and cities.
This move signaled Novaland’s massive return to the real estate market in 2018. In contrast to the nearly one-year downturn when the group was virtually “in shape”, no new projects were launched and “Extremely large drop”.
This is the most extensive recruiting of this group ever. According to the representative of the corporation, 2018 is a pivotal year for the strategy of expanding the Group’s business investment, especially the real estate segment, not just commercial real estate. is flat.
In 2018, Novaland will continue to hand over 11 more projects; It is expected to announce four new housing projects with an estimated 12,000 units on the market, as well as new types of residential and commercial real estate.
In details, the group will move to develop resort real estate products in cities with high tourism potential such as Da Nang – Hoi An, Nha Trang – Cam Ranh, Da Lat, Binh Thuan – Phan Thiet, Ba Ria – Vung Tau – Con Dao, Can Tho and Phu Quoc
What is the “health” of Novaland?
With $ 2.4 billion in capital, Novaland is one of Vietnam’s largest private developers, a reputable real estate developer with more than 40 commercial developments. and went into operation. The Group has strategic shareholders such as the GIC of the Singapore government, J.P.Morgan, Credit Suisse.
Novaland is leading the development of high-end apartment projects in Ho Chi Minh City.
In 2017, about 5,800 Novaland products were selected by customers, accounting for about 18% of the market share of the entire market. According to data from CBRE. Novaland also handed ver nearly 3,600 houses to consumers.
According to financial statements of this corporation, the end of 2017, Novaland recorded impressive business results with net sales reached VND11,632 billion, up 58% over the same period in 2016; profit after tax reached VND 2,062 billion, up 24% over the same period; Owners’ equity increased 32% from end of 2016, from VND10,047 billion to VND13,256 billion, charter capital increased from VND5,962 billion to VND6,497 billion.
After a period of “stagnation”, the financial situation of Novaland tends to go down. This group has a debt of up to 35,968 billion, accounting for 73% of total assets. According to financial experts, Novaland’s intrinsic value remains very large based on brand equity and land holdings. However, Novaland’s problem is its inventory and large financial debt.
In the latest development, Novaland Group has approved the plan to successfully issue 100 million shares and $ 300 million of convertible bonds to partners to earn more than VND10,000 billion.
Another plan is for 99.99% shareholders to agree, Novaland will list on the Singapore Exchange or another overseas stock exchange in 2018 or 2019.
With the bold move, Novaland is showing its efforts to return to the status of a leading real estate business in the context of increasing cash flow pressure. However, the result of this strategy is still waiting for the penetration of the real estate market.
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