Ciputra developers makes big money on land transferring

By Tran Anh - Jun 06, 2019 | 09:20 AM GMT+7

TheLEADERLand transferring activities in the past years are said to make extra cash for the developer to pay dividends to its shareholders.

Ciputra developers makes big money on land transferring
Citra West Lake has sold a number of iand plots within the Ciputra Hanoi project to other investors.

As the shareholders of joint-venture Citra West Lake City Development Company Ltd., Vietnam’s Urban Development and Infrastructure Investment Corporation (UDIC) and Indonesia’s Ciputra Group could have benefited from the rising performance of the joint venture in 2018, thanks to the warming up of the local property market in recent years.

In particular, as Citra West Lake speeded up the development of its apartments and villa projects and promoted its land transfer activities in the Ciputra Hanoi International City, the company is believed to have generated extra profit last year to offer its shareholders a big dividend payout.

UDIC, according to its 2018 financial statement, has earned some VND634 billion ($27.6 million) in dividends from its subsidiaries and joint ventures at the end of 2018, a 2.5-fold increase compared to the end of 2017. 

While the actual dividend paid by Citra West Lake was not specifically disclosed, of the entire VND2.398 trillion ($104.3 million) investment UDIC poured into its 34 subsidiaries and joint ventures, the capital in Citra West Lake accounts for the lion’s share of 77 per cent.

UDIC currently has 30-per cent holding at Citra West Lake.

Last year, Citra West Lake sold a number ofland plots within the Ciputra Hanoi project to other investors. Some of them included the TM01 multifunctional commercial plot on 5.2 hectares, two plots for high-rise apartment complexes on an area of 40,000 square metres, four plots for school buildings on 45,000 square metres and another piece of land for low-rise housing constructions.

The Ciputra Hanoi International City project was initiated by Citra West Lake in 2003, with a registered investment of $2.11 billion with the aim to construct 50 high-rise buildings and 2,500 landed houses.

Back in 2017, Citra West Lake transferred its 7.3-hectare Ciputra Hanoi Mall project to Korea’s Lotte Group. The project completed its groundwork in 2012 but since then its construction has been put on hold. Lotte has indicated that it will invest some $300 million to carry on its construction.

The joint venture has also transferred a couple of land plots to local pharmaceutical firm Vimedimex. One of them, according to the drawing plan, is going to be a commercial complex with office and hotel. A project named Lotus Centre that consists of both low-rise and high-rise structures on the spot has currently been advertised by a number of brokers.