Savico eyes property sector as revenue booster

Thursday, May 15, 2008
The HCM City based Saigon general Service Corp, or Savico, said it would deeply engage itself in the property sector with many projects nationwide in the offing, considering them as the key source of income as the company targets high revenue this year.
Board chair Nguyen Quang Tien said that it targets to obtain 2.2 trillion dong, or some US$137 million, in turnover this year, up 450 billion dong on last year, while the profit is targeted at 80 billion dong and a dividend for 2008 at 15%.
While trading and service remain Savico's core business in 2008, the company sees property projects as the base for service-trading system's growth, Tien was speaking at the company's shareholders meeting last Saturday at the Hotel Majestic.
The company will cooperate with
Vinaland Investments Co to develop Savico Plaza project at 115-117 Ho Tung Mau Street in HCM City's District 1 at an estimated cost of US$50 million, of which 50.5% is from Savico. The project includes a trading centre, high -class offices and apartments for lease, and construction will start in the four quarter this year.
Savico also has plans to develop Savico Plaza at 104 Pho Quang Street in Tan Binh District. The US$53 million building includes a trading centre, a hotel, and offices and apartments for lease.
Besides projects in the city, Savico is also expanding the property business to other localities. It will develop Savico Trading Centre System in Can Tho City and Savico Plaza Long Bien in Hanoi.
Savico is putting a finishing touch on some office building projects in HCM City like the seven -story building at 555 Tran Hung Dao Street and another seven-story office building with at 35 Dong Khoi Street, both in District 1 in the city.
The company has also started work on an 11-story building at 227 279 Ly Tu Trong Street in District 1. Besides, the company also builds hotels or resorts in Da Nang and other provinces.
Last year, the company obtained 1.750 trillion in revenue and 83.9 billion dong in before-tax profits, up 38% and 23% respectively compared with its targets.