Investment and Housing Development Cotec (CotecLand, stock code: CLG) has strategic decision is diverted from the real estate investor and general contractor construction become pure investment and general construction contractor in the medical field.
The new strategy, in line with the changing business environment helped CLG does not get bogged down in the difficult period of time the real estate market and open up new development potential.
At the beginning of 2012, identified real estate market remains difficult prolonged CLG Board has decided to focus on the field of construction contractors. The field of real estate investments focused on two projects is Blue Sapphire and Blue Sapphire Resort Phu Binh. But the project has been implemented in different stages of pre-feasibility report and feasibility, holding investment opportunities in developing and cultivating the next year.
Project Dong Nai General Hospital - Phase 2
As a result, in 2012, the general contractor construction sector accounts for about 68% of the revenue structure of the CLG, in the business of real estate and leasing office only modest results. Revenue mainly comes from construction projects: Blue Sapphire Resort is 131.53 billion project in Dong Nai General Hospital - Phase 2 is 6.05 billion. Despite not achieving 100% of the plan, but the results are evaluated in accordance with the economic situation in 2012, when the real estate market is difficult and risky. This proves that the diversion of CLG's business properly.
In the investment field, CLG will focus on medical projects, rather than investing in projects in the residential segment as before. Mr. Dao Duc Nghia, CLG Chairman said: "We will structure investment, reduce investment in the real estate business to 20%, boost investment in health projects. Objective 5 years, CLG owns 5 hospitals towards becoming professional investors in this field. " In fact, the CLG is deploying three hospital projects: Dong Nai General Hospital - Phase 2, Duc Giang Hospital Obstetrics - Ha Noi and aesthetic Sanatorium, rehabilitation and convalescence international Vung Tau.
Project Dong Nai General Hospital - Phase 2 has an area of 12,000 m2, approx 700 beds (including 1 basement and 18 floors), total investment of 1.266 billion is expected, will be completed and put into I/2015 operations in the quarter. The project was funded by CLG and contribute Dong Nai General Hospital, Building Technology Corporation and Building Materials (Cotec Group). This is a form of social investment in the health sector. After the initial success of the project in Dong Nai General Hospital - Phase 2, the CotecLand are getting the attention and invite investment cooperation, socialization of health projects in other provinces in country.
Project Obstetrics Hospital in Hanoi, Duc Giang has an area of 8,500 m2, a size of about 120 beds, with modern medical service quality (including one basement floor and 8), the total investment is expected 530 billion, will be completed and put into operation in the first quarter IV/2014.
The third project is aesthetically Sanatorium, rehabilitation and international resort Vung Tau area of 3 hectares, the size of about 700 beds, the total investment estimated at 976 billion, by CLG partnership with Tourism and Investment Corporation building in Asia and Dong Nai General Hospital - Phase 2 capital contribution.
"In the medical field, we focus on the segment of modern medical services and luxury resort combined with medical care by linking with the major hospitals in the country, with the cooperation negotiations foreign partners such as Ramsay Group - Australia, Bumrungrad Hospital - Thai Land, Capital Medical - Japan to meet the needs of Vietnam today. This market segment is worth $ 3-5 billion / year ", he means to say.
Investing in the health sector is key and key construction contract basis in the field next 5 years, which is considered a strategic change and sensitivity of the CLG. The shift has helped CLG promptly resolve employment needs of workers, generate stable cash flows from the Company's construction and attract funding from credit institutions and While foreign investment in the health sector potential.
Funds raised from the issuance of shares in 2012 CLG has been used effectively when buying shares, investments, the hospital project. Investment hospitals, medical services bring higher profit margin if the market segment towards premium services. So, in 1-2 years, CLG plans to increase its charter capital structure and equity ratio of loans to ensure appropriate investment projects safely, efficiently.
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