Following a period of significant fluctuations in the real estate market, the trend of restructuring business models is becoming increasingly evident. While previously businesses were primarily judged by the size of their land bank and the speed of project development, in this new phase, the ability to own and utilize assets to generate stable cash flow is becoming a more important indicator.
In this context, the announcement by Saigon Thuong Tin Real Estate Joint Stock Company - TTC Land (HOSE: SCR) of its plan to merge with Thanh Thanh Nam Joint Stock Company (TTN) ahead of the Annual General Meeting of Shareholders for the 2025 fiscal year is seen as a clearer strategic move to improve asset quality and strengthen the foundation for long-term growth.
Operating assets will become the new benchmark for real estate businesses in 2026.
Operating cash flow becomes a priority in the new cycle.
Market realities show that large land reserves remain a significant advantage, but the efficiency of land utilization depends considerably on legal progress, purchasing power, and market conditions at any given time. This means real estate businesses must increasingly focus on assets that are operating well, capable of generating recurring revenue, and supporting cash flow balance.
Leasing assets, especially commercial real estate, office properties, and assets with stable operations, help businesses increase their resilience against cyclical fluctuations.
This is also why more and more real estate businesses are shifting from a purely project development growth model to a model that combines development and operation.
TTC Land Chooses to Supplement Operating Assets Through Share Swap
According to documents submitted to the General Shareholders' Meeting, TTC Land plans to merge with TTN through the issuance of shares to exchange for existing assets. The goal of this plan is not only to expand asset size but also to add cash-generating assets to the portfolio, diversify revenue sources, and optimize capital structure by eliminating the need for cash. This is noteworthy because, in the context of a still recovering market, increasing operating assets can create a more stable foundation for the business in the medium and long term.
TTC Building – One of the key buildings managed and operated by Thanh Thanh Nam.
According to the proposal, TTN currently operates in the field of office leasing, whether owned, used, or leased. The total leased floor area exceeds 42,000 m² with a high occupancy rate. As of December 31, 2025, TTN had equity capital exceeding VND 848.8 billion and total assets exceeding VND 1,265.8 billion. After the transaction is completed, TTC Land is expected to become a major shareholder owning 99.60% of TTN's charter capital; TTN will continue to operate as a joint-stock company and become a subsidiary of TTC Land. The business operations of both TTC Land and TTN are expected to continue as normal after the swap. Besides its assets, TTN also has experience in managing and operating commercial real estate. This is expected to support TTC Land in effectively developing the projects after completion.
Forecasts indicate that in the new phase, the market will likely reassess real estate companies not only based on project development speed, but also on asset quality, operational efficiency, and cash flow generation capabilities. From that perspective, the TTN share swap plan shows that TTC Land is gradually shifting towards genuine growth, achieving a better balance between project development and asset exploitation.
If approved by the General Shareholders' Meeting, this would be a crucial step in the strategy to strengthen the company's internal capabilities, improve growth quality, and create a more sustainable value foundation for shareholders in the long term.
According to the People's Police Newspaper