BCG leaders shared with investors at a meeting this month that real estate and renewable energy will be the two main activities of the group. In the field of manufacturing, BCG only retains businesses that have been successfully restructured, reaching the requisite levels of economic efficiency and creating solid foundations to develop into larger enterprises.
BCG expects to reach the after-tax profit of VND312 billion ($13.56 million) this year, VND681.5 ($29.6 million) in 2020, and VND826.5 billion ($35.93 million) in 2023. In real estate, BCG has implemented the Radisson Blu Hoi An project with the scale of 734 apartments and coastal villas, King Crown Village Thao Dien in District 2, Ho Chi Minh City with 17 villas in the first phase and serviced apartments and a hotel, as well as offices for lease in the second phase.
BCG leaders shared that in 2019-2020, Radisson Blu Hoi An and King Crown Village Thao Dien will bring VND900 billion ($39.13 million) in profit to BCG, and the group is negotiating to transfer part of the group’s capital in the two projects. BCG owns a hundred per cent in Radisson Blu Hoi An, and 48.5 per cent in King Crown Village Thao Dien.
"If we close the deals with our partners soon, BCG will fulfil the profit plan for 2019. Currently, the deal is still in progress, but we are confident in implementing our 2019 profit plan. If the deal is delayed for any reason, the profit will be transferred by the beginning of 2020," Pham Minh Tuan, deputy CEO of BCG, shared.
The upcoming real estate projects of BCG include Condotel Pegas Nha Trang (2.74 hectares, implemented in 2020-2021), Bao Loc urban area (17ha, in 2019-2023), Loc Phat residential area (Bao Loc, Lam Dong – 46.9ha, implemented from 2019 to 2022), Hoa Ninh residential area (Di Linh, Lam Dong –49.3ha, implemented in 2020-2023), Hiep Binh Chanh urban area (6.3ha, implemented in 2020-2022).
Regarding the capital to meet BCG's investment needs, according to Nguyen Ho Nam, chairman of BCG, most of BCG's projects are co-operating with international corporations on issues like technical and technological issues, branding, or capital co-operation.
BCG has signed a contract with KPMG Singapore to become the exclusive consultant for BCG to seek international funding and domestic banks to increase credit room for BCG to implement a new project. Along with that, BCG received capital contributions from South Korean investors including Hanwha Energy involved in solar power plant projects and real estate firm Woomi.
BCG is also working with a strategic partner from Europe. In the field of renewable energy, BCG finished two solar energy projects in Long An with the total capacity of over 140MW. Of these, the BCG-CME Long An 1 solar power plant, which in BCG holds 37.5 per cent, has the capacity of 40.5MW and is expected to bring revenue of VND140-150 billion ($6.1-6.5 million) per year from 2020.
BCG-CME Long An 2 (GAIA) has the capacity of 100.5MW and is expected to launch operations in this November, bringing revenue of about VND320 billion per year from 2020. BCG has a 32.5 per cent stake in GAIA.
BCG-CME Long An 1 solar power plant sells electricity to Electricity of Vietnam at the price of 9.35 US cent per kW for 20 years, while GAIA hopes to sell electricity at 8.72 US cent per kW. In addition to the two projects above, BCG is trying to complete procedures for other solar power plants in Long An (100MW), Dak Lak (50MW), Gia Lai (300MW), Tay Ninh (165MW), a surface solar power plant in Quang Nam (200MW), a wind power plant in Soc Trang (50MW).
At the two solar power plants in Long An, BCG worked with Vietnam-Oman Investment (VOI) and took up VND2 trillion in loans from local banks ($86.96 million – 65 per cent of the total investment capital of the two projects).
New private home sales in Singapore fell 27% in October from September, reported Channel News Asia, based on the data released by the Urban Redevelopment Authority (URA).According to URA data, developers only sold 928 units in October (955 units...
Singapore now claims the top spot for real estate investment prospects in terms of price increases in 2020. Hong Kong, rocked by months of violent political protests, has fallen from 14th place to the bottom of the pile in 2019.