Sacombank to auction $135 million real estate assets on June 28

By Minh An - Jun 15, 2018 | 10:03 PM GMT+7

TheLEADERSaigon Thuong Tin Commercial Joint Stock Bank or Sacombank will auction several land plots in Ho Chi Minh City and industrial land plots in Long An province through Global Auction Services JSC on this June 28.

Sacombank to auction $135 million real estate assets on June 28
Tan Kim warehouse is one of real estate assets that will be auctioned by Sacombank

The total value of real estate assets to be auctioned is estimated at VND3,089 billion ($135 million).

Notably, six land plots under Tan Kim Industrial Park, Can Giuoc district, Long An province cover an area of over 29.1 hectares. The initial value of six land plots is estimated at VND1,034 billion ($45 million).

According to auction regulations, the buyers must deposit 5 per cent of asset value, equivalent to more than 50 billion ($2.25 million) if they wish to participate in this auction.

Other assets to be auctioned on this June 28 include land lots located in district 8, Binh Thanh district and Tan Phu district, Ho Chi Minh City. These assets are priced from VND382 billion ($16.8 million) to VND447 billion (19.6 million).

On the bank’s website, many high-value real estate assets for sale such as industrial land lot in Binh Duong province, land lot in district 3, Ho Chi Minh City CM are on offer.

Earlier this year, the bank sold the collateral in Duc Hoa III Industrial Park, Long An Province at a price of VND9.2 trillion ($404 million).

The collateral consisted of three land plots in the Duc Hoa III related to Tram Be, former vice chairman of Sacombank from 2012 to 2015.

However, Sacombank said that the bank received only VND920 billion ($40.4 million) of deposits. The remaining of VND8.28 trillion ($363 million) will be paid within seven years from the date of signing the contract with the grace period in the first two years and interest rate of 7.5 per cent per year.

Thus, in order to handle a large-scale non-performing loan, Sacombank sold the collateral and recorded a huge amount of other receivables for a seven-year period.

The settlement of bad debt has contributed significantly to achieve the target of handling VND19 trillion ($834 million) of bad debts and outstanding assets in 2017 of the bank. This achievement was attributed to the role of Duong Cong Minh, chairman of Sacombank since mid-2017.

According to the bank's report, the bad debt rate of Sacombank has decreased from 6.68 per cent at the beginning of 2017 to 4.28 per cent at the end of the year and is expected to decrease to three per cent in 2018.

Sacombank did not reveal the lucky customer who bought the collateral and received a seven-year deferred payment from the bank.

In another development, at the meeting held on March 02, 2018 among the People's Committee of Long An province and other departments, Him Lam Corporation proposed to adjust function of seven land plots within Duc Hoa III industrial park into residential land. This proposal has been approved in principle by departments but they are required to be reviewed in terms of areas and sizes of adjustment.

Him Lam is a real estate company associated with the name of Duong Cong Minh and Lien Viet Post Bank. However, Minh has no longer served as the chairman of Him Lam and the company has also withdrawn capital from LienVietPost Bank.