Investment & Trading of Real Estate Joint Stock Company (Intresco)

Intresco, founded in 1988 and privatized in 2000, specializes in the construction, development, sale and lease of residential and commercial real estate. They market its properties primarily to local Vietnamese buyers in the low and mid-end of the market, in the wider Ho Chi Minh City area.

Investment Thesis

The Company’s original success stems from its ability to continuously expand its land bank in well-situated and feasible locations at low cost; and their close relationship with the Ho Chi Minh City government as it was formerly a subsidiary of the 100% state-owned Saigon Real Estate Corporation.

Based on the Company’s current land bank of residential land in and around Ho Chi Minh City, VAF estimates its total Net Asset Value (NAV) is more than several times its current market capitalization. VAF targets to reducing this gap by improving the transparency of, and monetizing, the value of its land-bank by some combination of: (1) conducting and publicizing independent valuations of land bank prior to IPO in late 2009, (2) divesting certain pieces of land for cash, (3) forming development joint ventures, and (4) increasing the visibility of Intresco shares in the investment community.

Good Land Bank

Intresco owns a large land bank in many strategic locations in Ho Chi Minh City waiting for capital to develop. Their most valuable pieces of land include residential area along Saigon Riverside, Ly Chinh Thang building, Hoang Van Thu-Nguyen Van Troi Building, Giai Viet Building in District 5, residential areas in Binh Chanh District, An Cu Building in District 2, Eco-Tourist Area in District 9 and high-end residential area in District 9.

Developing Residential Buildings

Intresco develops residential buildings in fast growing urban areas. Some of its recent projects include 17-storey An Cu Building and 20-storey An Khang Building which are the two first residential buildings for middle-class in the An Phu - An Khanh municipality in District 2. The Company expects to launch another 14-storey residential building, namely Thinh Vuong in Binh Trung Dong, District 2 in 2010.

Developing Residential Communities

Intresco has also developed some entire residential communities. Some recent projects include the 32.7-ha residential municipality in Binh Chanh and 18-ha residential area in Nha Be. Intresco will be the sole owner of the residential communities after the site clearance and compensation. These visionary projects of Intresco are considered the most well-organized, well-developed and pioneer projects in the areas.

Construction

Intresco was chosen to be contractor of several mid-scale projects in residential, commercial and industrial buildings. Some examples are building for the Bank of Agriculture and Rural Development, Coopmart Phu My Hung, Tan Thuan Industrial Zone Emall, Ba Ria Television and Broadcasting Center, Bac Dinh Bo Linh Apartment Block and Phu Gia Apartment Building.

History of the Company

1984: Intresco was established including 6 subsidiaries.

2000: Intresco was equitized with chartered capital of VND 25 billion. Capital structure changed to 25.81% state-owned, 9.5% employee-owned and 64.69% outsider-investor-owned.

May 2006: Intresco issued 1,000,000 convertible bonds at the face value of VND100,000.

July 2006: Chartered capital was increased by VND 11.253 billion from retained earnings.

April 2007: Chartered capital increased to VND100.253 billion from converted bonds and retained earnings.

Sep 2007: Intresco raised VND100 billion to increase its chartered capital to VND200.253 billion.

Oct 2009: Intresco listed its shares on the Ho Chi Minh Stock Exchange.

More information on Intresco is available on their website www.intresco.com.vn.