Novaland proposes using luxury real estate in HCMC to settle bond debts

Novaland, a property developer, has proposed using real estate from The Grand Manhattan project to repay debts owed to bondholders of three bond packages. In a communication sent to bondholders, Novaland stated that the deadlines for repayment, including both principal and interest, for two of its bonds had already passed in February and May. The remaining value of these bond packages now stands at over VND1.58 trillion ($64.95 million).

Additionally, the deadline for another bond package worth VND1.5 trillion has been extended until March 2026. Novaland explained that due to its restructuring efforts, the company requires time to stabilize its project development activities and restore its business operations. As a solution, Novaland proposes settling the debts and interests by offering 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 opportunity to choose from available real estate options and receive discounts. Novaland has already started repaying some of the debts and interests to bondholders using real estate this year. However, this is the first time the company has presented a detailed plan to use real estate from The Grand Manhattan project, located in downtown District 1, for debt repayment. The project spans a land area of 14,000 m2 and consists of three 38-storey blocks facing Co Bac and Co Giang streets. Apartments at this location are sold at prices exceeding VND100 million per square meter. In the third quarter, Novaland reported a post-tax profit of over VND136 billion. This marked the first profitable quarter for the company after incurring a loss of over VND1 trillion in the first half of the year.

Cumulatively, during the first nine months of this year, Novaland’s total consolidated revenue reached over VND2.73 trillion, with a loss of over VND950 billion. Throughout the year, Novaland has generated revenue from the completion of several projects, including Novaland Phan Thiet, Novaland Ho Tram, Palm City, and Saigon Royal. The company has also been actively engaged in debt restructuring efforts.