Phat Dat's Astral City project completes legal procedures

Legal "difficulties" are solved

Phat Dat announced that it has completed its financial obligations for the land to develop the Astral City project according to notices No. 6589/TB-CTBDU and 6590/TB-CTBDU of the Binh Duong Provincial Tax Department, with the amount paid to the state budget being 511 billion VND.

The project has an area of ​​3.73 hectares invested by Saigon - KL Real Estate Joint Stock Company, formerly a subsidiary of Phat Dat. In June 2022, Phat Dat approved the Board of Directors' Resolution to transfer Saigon - KL shares to Danh Khoi Group.

Astral City project perspective.

After completing the financial obligations, Astral City will be granted a license to open the sale of future apartments, allowing Danh Khoi to officially sign sales contracts with customers. At the same time, it will create a corresponding cash flow for the bank to continue disbursing construction.

According to Danh Khoi, by the end of the first quarter of 2023, the project had about 1,500 products that customers had agreed to deposit. When meeting the sales conditions according to regulations, the cash flow from the above products is estimated at 1,500 - 2,000 billion VND. Currently, the project is accelerating construction progress.

This unit also said that Phat Dat's efforts to complete the project's legal procedures in the context of the general difficulties of the market is a positive signal for the entire real estate industry and has important significance in the sales implementation of the distribution unit.

Astral City project is speeding up construction progress.

Phat Dat is ready for new plans

According to Phat Dat's 2022 financial statements, Danh Khoi's total debt to be paid is about VND 3,235 billion. Danh Khoi has prepaid Phat Dat VND 511 billion to fulfill its financial obligations with the Astral City project. The positive signal from the project's legal status is the basis for expecting a cash flow for Danh Khoi, thereby helping Phat Dat quickly recover its debt.

Currently, Phat Dat's total assets are VND 22,843 billion, and its equity is about VND 9,261 billion. If we consider the elimination of inventory and liabilities related to The EverRich 2 and 3 projects (in fact, these two projects have been transferred and received money from partners, just waiting for legal conditions to be met to reduce "Inventory" and "Other short-term payables"), Phat Dat's actual total assets are estimated at about VND 17,500 billion. Thus, with assets and capital as estimated, the leverage ratio "Total Liabilities/Equity" is only about 0.88, or the ratio "(Short-term + long-term loans)/Equity" is at 0.38, a safe index for real estate businesses.

Source: Financial statements, estimates

After excluding the EverRich 2 and 3 projects, Phat Dat's recorded inventory value is about VND 7,700 billion, with projects such as Binh Duong Tower, Tropicana or Serenity Phuoc Hai standing out. With the Binh Duong Tower apartment project covering an area of ​​4.5 hectares, Phat Dat expects to be able to deploy in 2023. The total revenue of this project is estimated at VND 13,000 billion.

Other high-value assets such as the Office Building at 39 Pham Ngoc Thach, District 3, Ho Chi Minh City are recorded in the "Long-term unfinished assets" section, 49% of shares of BICIDI Real Estate Investment JSC are recorded in "Investment in joint venture companies".

Short-term receivables such as: receivables from customers, prepayments to sellers and other receivables total about 5,650 billion VND, including receivables from Danh Khoi.

After settling nearly VND 900 billion of bonds in January 2023, it is estimated that Phat Dat's total debt (short-term + long-term) will be VND 3,500 billion, of which 46% are issued bonds, most of which will mature at the end of 2023.

Source: Financial statements, synthesis

However, Phat Dat's Board of Directors said that the company has a plan to monitor business cash flow and debt collection as well as change its strategy to focus on the housing segment in 2023 with the development of Binh Duong Tower and Astral City projects. Phat Dat is also continuing to balance resources, closely research and follow the State's Decrees and Policies to ensure investment efficiency in projects and make the best effort to overcome the challenging period of the market.

Source: https://www.congluan.vn/du-an-astral-city-cua-phat-dat-hoan-tat-phap-ly-post246807.html