Property developer Nam Long Group (HOSE: NLG) announced its township development and market expansion strategy for this year at Nam Long Day it organised at the Intercontinental Hotel in HCM City on March 28.
This year besides speeding up projects on more than 400 hectares of available clean lands, Nam Long will also expand its business to the northern market and the southern key economic region with more than 200ha of new lands suitable for developing townships to realise its vision of becoming a leading township developer in the country.
Nam Long’s new townships will be in the 20-200ha range and built on unencumbered lands mainly in HCM City, Đồng Nai, Long An, Hà Nội, Hải Phòng and Quảng Ninh.
In addition to having good transport connectivity and urban infrastructure that gets regularly upgraded, these provinces and cities also have very high population growth rates and are home to many industrial parks and a young workforce.
Thus, they are appropriate for developing townships to serve the accommodation, entertainment, education, and commercial needs of locals.
Nam Long has successfully developed many townships in the past, such as Nam Long – Tân Thuận Đông (spread over 28ha in District 7), Nam Long – Phước Long B (34.7ha in District 9), Nam Long – Phú Hữu (17.5ha in District 9), Nam Long – Bình Dương (12.55ha), and Nam Long – Cần Thơ (80ha).
In 2018 Nam Long successfully developed three townships: the 37ha Mizuki in Saigon South, the 8.5ha Akari City in Bình Tân District and Waterpoint in Long An Province measuring around 165ha in the first phase.
Based on the momentum, this year Nam Long has acquired three new lands in Đồng Nai and Hải Phòng to develop the Nam Long Waterfront on 170ha, Nam Long-Đại Phước on 45ha and Nam Long – Hải Phòng on 21ha.
Nam Long Waterfront township
The Nam Long Waterfront township is located in Long Hưng Commune in Biên Hòa city, separated from the VinCity project in HCM City’s District 9 by the Đồng Nai River.
This area has the most dynamic and developed economy and infrastructure in Đồng Nai Province.
Within a radius of five kilometres from the project are inter-regional arterial roads such as National Road 51, National Highway 1A, Hà Nội Highway, Mỹ Phước – Tân Vạn – Nhơn Trạch Avenue, HCM City – Long Thành – Dầu Giây Expressway, the future Long Thành international airport and metro route linking Bến Thành – Suối Tiên – Biên Hòa.
This area is also home to a number of large industrial parks such as Biên Hòa 1 and 2, Amata, Long Bình, Tam Phước, and Long Thành, where tens of thousands of experts and workers work and live.
The township is also located close to the Sơn Tiên eco-tourism area, Long Thành golf course, Shing Mark International Hospital, and the Long Thành and Biên Hòa city administrative centres and offers easy access to the Việt Nam National University-HCM City, Suối Tiên tourist area, Cancer Hospital 2, the new Miền Đông Bus Station, and the Saigon Hi-Tech Park, providing added convenience to future residents.
The Nam Long Waterfront project has been allotted land and it has paid the land use fees and received approval for its 1/500 plan and the land use rights certificate (red book).
The township is expected to be built in 2019 – 25 at a cost of VNĐ9.2 trillion (US$396 million).
When finished, it will have more than 4,000 villas and 3,000 apartments.
Nam Long Đại Phước township
Nam Long Đại Phước township is situated in Nhơn Trạch District, Đồng Nai Province. It is on Đại Phước Island, dubbed the “Pearl of the east of Saigon” and surrounded by the Saigon River, which brings a cool breeze all year round.
With its prime location near Districts 2, 7 and 9 in HCM City, from Nam Long Đại Phước it will be easy to access key transportation routes such as Highway 51A, HCM City – Long Thành – Dầu Giây Expressway, Bến Lức – Long Thành Expressway, and Long Thanh International Airport in future.
When the Ring Road No.3 is completed in 2020, it will take a mere 20-25 minutes to go from the township to HCM City’s central business district.
Nam Long Đại Phước also boasts beautiful scenery since it lies along 1,200m of the Cái River, and has outstanding facilities thanks to its location next to CBD central park and Jeongsan golf course, not to mention its internal facilities.
Nam Long Đại Phước has completed compensation payments for the land, paid the land use fees and got approval for its 1/500 plan and the land use rights certificate (red book).
The project is expected to be built in 2019 – 21 at a cost of VNĐ 3.5 trillion (US$150.8 million), with its main products being duplex apartments and independent villas.
Nam Long Hải Phòng project
Nam Long – Hải Phòng is the first project in Nam Long Group’s strategy to expand into the northern part of the country.
Located 20 minutes from the centre of Hải Phòng city and over the Bính Bridge, Nam Long – Hải Phòng is located in an extremely strategic position and boasts access to modern road, sea and air transportation facilities such as National Highway No.5, National Highway No.38, Hà Nội – Hải Phòng Expressway, and Cát Bi Airport to connect seamlessly to Hà Nội as well as Quảng Ninh Province.
Nam Long – Hải Phòng is located in a very busy, densely populated area with many facilities such as the VSIP clean industrial park, Vũ Yên golf course, Aeon Mall, and Lạch Huyện deep-water seaport.
From now to 2020 a series of bridges including Hoàng Văn Thụ, Nguyễn Trãi and Vũ Yên will be put into operation, reducing travel time from Nam Long Hải Phòng township to Hải Phòng city centre to just 10 minutes.
Legal procedures have been completed for the project and it will be developed in two phases.
It will supply to the market a total of 850 villas, commercial townhouses and 2,200 apartments and have facilities such as schools, malls, parks, sports grounds, and others.
Steven Chu, CEO of Nam Long Group, said: “Nam Long has been preparing for a breakthrough in township development for many years by tying up with foreign investors, raising funds, accumulating experience in property development, seeking lands and so on. It is time for Nam Long to confidently take off.”
Indeed, the lands it announced it owned last year and on which it has begun to develop Mizuki and Waterpoint show Nam Long’s vision. Bought long ago at low rates, they now command very good prices.
For example, the area of 165ha (empty land) meant for the first phase of Waterpoint, equivalent to 45 per cent of the total project area (355ha), is estimated by real estate consultancy Cushman & Wakefield at $65 per square metre.
This means the land value in the first phase is $106.8 million (approximately VNĐ2.43 trillion).
In contrast, the entire 355ha is recorded in the company’s books at just VNĐ1.504 trillion.
Thus, assuming Nam Long will contribute 50 per cent of the joint venture’s capital to develop the Waterpoint project, the company could record an additional VNĐ1.7 trillion in profits from the valuation of the 165ha of land.
Nam Long Nguyên Sơn (Mizuki) has also achieved great success, with record sales in its first phase. It sold 1,000 Flora apartments and 1,000 EHomeS apartments and Valora townhouses/villas in a very short time, earning revenues of nearly VNĐ 4 trillion.
Speaking about business strategy and co-operation to develop new townships, Nguyễn Minh Quang, Nam Long’s director of sales and marketing, said: “Besides maintaining core ‘affordable’ products under the Ehome, Flora and Valora lines, Nam Long will begin a very special form of business co-operation.
“We will give priority to partners who buy wholesale Nam Long’s clean lands which have been completed legal procedures and the infrastructure.
“Nam Long will also expand co-operation with commercial real estate developers to build hospitals, schools and supermarkets to create facilities for people living in Nam Long’s townships as well as the surrounding areas. ”
Nam Long has 27 years’ experience in township development with product lines: EHome, Flora and Valora.
It has total assets of more than VNĐ9.5 trillion and possesses over 800ha of unencumbered land in prime spots, ensuring it can continue development for the next 10 years.
It has a desirable portfolio of shareholders and partners such as Nam Viet Ltd (100 per cent subsidiary of Goldman Sachs), IFC, Ibeworth (Keppel Land), and Mekong Capital.
It has tied up with partners with enormous experience in international real estate such as Hankyu Realty, Nishi Nippon Railroad, Gamuda Group, and Indochina Capital.
(Source: Nam Long IC)