South Korea’s Lotte Engineering & Construction (Lotte E&C) signed a strategic cooperation agreement with Saigon Thuong Tin Real Estate JSC (TTC Land) on November 21.
Lotte E&C will jointly develop real estate projects with TTC Land through its wholly-owned subsidiary in Vietnam, Lotte Land. It plans to invest around $100 million in such projects, of which $22 million will be disbursed to TTC Land early next year.
Following TTC Land’s comprehensive restructuring strategy adopted at the General Meeting of Shareholders in April 2019, building a strong and sustainable financial structure is one of the strategies its Board of Directors is paying particular attention to in order to prioritize and accelerate deployment.
The signing of this strategic cooperation agreement marks the first success in realizing this strategy.
Lotte E&C, one of the key affiliates of the Lotte Group, is a leading real estate developer and a general contractor in every sector of construction, with a head office in South Korea and numerous branches across the globe.
It is the undisputed industry leader in South Korea’s housing sector, providing over 20,000 units every year and building prestigious landmarks including the 123-story Lotte World Tower and the 65-story Lotte Center Hanoi.
After a period of working and negotiating, TTC Land and Lotte E&C reached an agreement and signed the strategic cooperation agreement. TTC Land will research and develop plans, complete legal procedures, and create a clean land fund for project development.
Meanwhile, Lotte E&C will establish the business structure, finance, and financial arrangements for projects, and participate closely and contribute to design, construction, and marketing activities for such projects.
At the signing ceremony, Mr. HA Suk Joo, President and CEO of Lotte E&C, expressed his pleasure at becoming a strategic partner of TTC Land and hopes the two sides will work closely to successfully develop future projects.
“Lotte E&C is a real estate project developer and general contractor in all construction sectors and has strong financial potential, while TTC Land has 15 years of real estate development experience in Vietnam and an abundant land bank,” said Mr. Nguyen Dang Thanh, Chairman of TTC Land.
“The cooperation between the two sides is to implement high-quality real estate projects, from planning and design to construction, with the goal of bringing Vietnamese people real estate projects with the best living environment and best product quality.”
TTC Land currently has 27 projects with hand over completed or underway, serving over 105,000 customers. Its total assets stand at over $473 million, has a land fund of more than 1,500 ha, employs over 600 people, and has invested in many cities and provinces throughout Vietnam.
In the past six months, it has implemented strong restructuring activities, with financial restructuring and proactive access to global capital being among the important goals to be pursued in the near future.
The cooperation agreement with Lotte E&C will contribute to TTC Land’s access to solid capital sources, advanced real estate development techniques, and experienced staff, which will help it quickly realize its business philosophy.