VRG earns big from leasing unused properties

Monday, Dec 07, 2020 09:08

An industrial park built by Sonadezi Corporation in Chau Duc District, Ba Ria-Vung Tau Province. — Photo sonadezi.com.vn

The Viet Nam Rubber Group (VRG) has enjoyed the most income from leasing unused facilities and residential areas among all listed industrial zone developers.

Viet Nam’s largest rubber corporation logged a total of VND9.28 trillion (nearly US$400 million) from leasing its properties to companies, ndh.vn reported.

The figure included VND257 billion worth of short-term leases and VND9.03 trillion worth of long-term leases, according to the firm’s third-quarter financial report.

VRG owns 16 industrial parks with a total area of more than 6,500 hectares. In 2021-25, the group plans to raise the total area of industrial parks to 15,000 hectares.

Idico Corporation earned nearly VND6.2 trillion from receiving pre-payments from customers to use its facilities in Phu My, Nhon Trach, My Xuan and Que Vo industrial zones.

Idico is developing a plan to deploy 10 industrial parks nationwide with a total area of 3,270 hectares, most of which are located in the southern region.

Other listed industrial zone developers such as Sai Gon VRG Investment Corp, Sonadezi, Nam Tan Uyen and Viglacera also posted big gains from leasing unused industrial parks’ facilities.

Sai Gon VRG Investment Corp saw its leasing revenue up 11 per cent year-on-year to VND5.93 trillion from VND5.32 trillion, while Sonadezi raised leasing income by 8 per cent year-on-year to VND4.26 trillion.

Companies seeking vacancies at industrial parks often make full pre-payments for their entire terms to ensure their operations at the parks are stable, according to ndh.vn.

Therefore, leasing incomes will be definitely recorded and declared in the industrial park developers’ quarter-end financial reports.

Share gains

Listed industrial park developers have seen their share prices rocket in recent weeks on expectations foreign companies will move their plants to Viet Nam amid the US-China trade war.

Since July 31, VRG shares – listed on the Ho Chi Minh Stock Exchange (HoSE) as GVR – have increased by a total of more than 110 per cent to VND20,050 apiece on Friday.

Sonadezi shares – traded on the Unlisted Public Company Market (UPCoM) as SNZ – have soared more than 42 per cent since late July to end last week at VND30,800 apiece.

Nam Tan Uyen shares (UPCoM: NTC) surged nearly 112 per cent in the same period to VND256,800 apiece ending last week.

Viglacera stock (HoSE: VGC) jumped nearly 48 per cent in the same period to VND27,800 per share on Friday. — VNS

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