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Novaland Proposes Paying Bond Debts with Luxury Real Estate in HCMC

Property developer Novaland has suggested using real estate from The Grand Manhattan project to repay debts to bondholders of three bond packages. The company has been struggling to meet deadlines and stabilize its business operations due to restructuring.

Details of the Bond Debts

In a document issued to bondholders, Novaland revealed that the deadlines to pay back debts and interests for two of its bonds have already passed in February and May. The remaining value of these bond packages amounts to over VND1.58 trillion ($64.95 million). Additionally, the deadline for another bond package, worth VND1.5 trillion, has been extended for two years to March 2026.

Using Real Estate to Pay Back Debts

Novaland stated that due to its restructuring, the firm requires time to stabilize its project development activities and recover business operations. It is now proposing to pay back debts and interests using properties, including, but not limited to, real estate projects such as Novaworld Phan Thiet in Binh Thuan province and The Grand Manhattan in HCMC. Bondholders will have the option to choose their preferred real estate, which is available, and receive discounts.

The Grand Manhattan Project

This is the first time Novaland has outlined a detailed plan to repay debts using real estate at The Grand Manhattan project, located in downtown District 1. The project, built on a 14,000 m2 land plot, faces Co Bac and Co Giang streets and consists of three 38-story blocks. Apartments at this location are sold at over VND100 million per square meter.

Novaland’s Financial Performance

In the third quarter, Novaland reported a post-tax profit of over VND136 billion. This was the first quarter when the firm reported profits, following the first half of the year with a loss of over VND1 trillion. Cumulatively, in the first nine months of this year, the total consolidated revenue of Novaland reached over VND2.73 trillion, and a loss of over VND950 billion.

Since the beginning of the year, Novaland has reported revenue from handing over several projects, such as Novaland Phan Thiet, Novaland Ho Tram, Palm City, and Saigon Royal. The firm was also focusing on debt restructuring.

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Orginal article: Link To Article – provided by Kansas City Realtors