An Gia (AGG) Honored as Top 10 Real Estate Developer in 2024
An Gia (AGG), a leading real estate developer, has been recognized as one of the top 10 key players in the real estate industry in Vietnam in 2024. This prestigious accolade comes from independent research conducted by Vietnam Report, a renowned organization dedicated to honoring and acknowledging exemplary businesses in the real estate sector.
A Well-Earned Recognition
To compile the list, Vietnam Report meticulously selected companies based on their performance and rankings in the Vietnamese real estate market. They employed the Media Coding method, which analyzes media coverage, along with conducting surveys involving relevant stakeholders. This comprehensive approach ensures that the evaluation is objective, scientifically backed, and up-to-date as of December 31, 2023.
An Gia (AGG) secured its spot in the top 10 real estate developers for 2024 alongside prominent industry players such as Vinhomes, Nam Long, EcoPark, Khang Điền, Phát Đạt, Hà Đô, Phú Mỹ Hưng, DIC, and Văn Phú – Invest.
Industrial Excellence and Financial Stability
An Gia’s inclusion in the esteemed list not only attests to its efforts and vision in building and developing its real estate brand, but also highlights its stable and robust financial capabilities in a rapidly changing market environment.
Having focused on the affordable housing segment for over a decade, An Gia prioritizes delivering products that cater to the income levels and needs of the general population. Simultaneously, the company places great emphasis on enhancing service quality and customer care, which are the pillars supporting its core products.
A Track Record of Success
In addition to being named one of the top 10 real estate developers in 2024, An Gia also proudly received the Impressive Real Estate Developer of 2023 award from Xây dựng newspaper and the Vietnam Real Estate Association. This award recognizes brands that have made significant achievements and contributions to the real estate market through innovative business solutions, transparent legal frameworks, and high-quality products.
Impressive Business Performance
An Gia’s business performance in 2023 was exceptional, with a revenue of nearly 3.9 trillion Vietnamese dong, exceeding the annual target by more than 30%. The company’s post-tax profit stood at 175 billion Vietnamese dong for its parent company, surpassing the approved plan at the Annual General Meeting by 75%. The majority of the revenue was generated from the successful handover of the Westgate mixed-use complex, which includes more than 2,000 units in Bình Chánh district, Ho Chi Minh City.
An Gia has successfully maintained a low debt-to-equity ratio and diversified its sources of project development capital. As of December 31, 2023, the debt-to-equity ratio was at a safe level of 0.51, and the bonds-to-equity ratio was significantly low, with just 0.11.
The company has also managed to stabilize cash flow and raise capital through bond issuance, repurchasing over 2 trillion Vietnamese dong worth of bonds in the past three years. Currently, the outstanding bond balance stands at over 300 billion Vietnamese dong, with plans to fully settle the bond obligations in the first half of this year.
Expanding Land Bank and Diversifying Capital Sources
An Gia considers land bank expansion a crucial and ongoing strategy. The company remains committed to seeking opportunities for mergers and acquisitions, obtaining clean land parcels, and prioritizing projects that have received investment approvals. These projects should be financially feasible and allow for swift implementation.
Currently, An Gia is conducting in-depth assessments of two promising land parcels in District 8 and Thủ Đức district, Ho Chi Minh City. These parcels are expected to introduce over 4,000 products to the market.
In 2022, the company acquired a 3.2-hectare land parcel in Bình Chánh district, with plans to develop around 2,000 apartments. Additionally, An Gia is in the final stages of negotiations to acquire new land parcels for the purpose of low-rise residential projects. The land bank development objectives also include accumulating assets for long-term targets in the future.
To diversify capital sources for project development, An Gia has strengthened its investment cooperation with foreign organizations and investment funds from the United Kingdom, South Korea, Japan, Taiwan, and more. These investors participate directly by providing capital for An Gia’s projects, becoming major shareholders alongside the company. This collaboration enables An Gia to realize the development strategy for mid-range and affordable housing projects.
Most recently, An Gia signed a memorandum of understanding and investment cooperation with Japanese partner Koterasu Partners. The partnership involves a $10 million investment through the purchase of subordinated shares of An Gia. This opportunity allows Koterasu to exercise the option to invest directly in The Gió Riverside project in Bình Dương. The project comprises approximately 3,000 units and targets buyers in Ho Chi Minh City and neighboring areas such as Bình Dương and Đồng Nai.
“An Gia remains committed to the mid-range real estate segment. It is a segment that consistently demonstrates robust demand, regardless of market fluctuations. An Gia’s philosophy is not to follow the market blindly or acquire land or projects at any cost. The company conducts thorough analyses of each land parcel to ensure that the product price matches the majority of buyers’ budgets when introduced to the market,” said a representative from An Gia.
Alongside the upcoming launch of The Gió Riverside project, the company aims to maintain a healthy debt-to-equity ratio, increase cash and cash equivalent reserves, and prepare resources to proactively adapt to the ever-evolving real estate market.
This article was written by an expert in the field of finance and economics for Business Today.