HDBank, the Ho Chi Minh City Development Bank, has initiated the seizure of 26 land lots and numerous asset rights from Hoang Quan Real Estate Joint Stock Company as the firm faces significant outstanding debts. As of September 7, the bank reported that Hoang Quan has a debt of approximately 895 billion VND, prompting the decision to take action against the company's collateral assets.

The seized properties include 26 land lots located in Ho Chi Minh City, covering a total area of over 3,660 square meters. Among these, four lots are part of the SaiGonRes project in District 8, with sizes ranging from 200 to 290 square meters, totaling about 1,000 square meters. Additionally, 14 lots are situated in the Phu Loi residential area, also in District 8, primarily sized at 120 square meters each. The remaining eight lots are located in Phu Huu, District 9, each measuring 126 square meters.

In addition to the land lots, the collateral includes all existing and future rights and interests related to investments and operations at the villa and apartment project in Thanh My Loi, District 2, now known as Cat Lai, Ho Chi Minh City. However, this does not include 35 apartments and four villas that have already been sold, transferred, leased, or exchanged.

HDBank plans to commence the asset seizure on September 25 and will continue until Hoang Quan settles its debt. The company, which has been a significant player in the social housing sector, has faced continuous challenges in meeting its business objectives in recent years. The leadership acknowledged that overly ambitious targets and reliance on anticipated cash flows from ongoing projects have contributed to its struggles.

For the current year, Hoang Quan aims for a revenue of 1.2 trillion VND and a pre-tax profit of 120 billion VND. However, halfway through the year, the company reported only over 70 billion VND in revenue and nearly 16 billion VND in pre-tax profit, achieving just 13% of its annual profit target.