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

Intresco develops and sells residential properties and commercial buildings, mainly in the Ho Chi Minh City area.

Being the subsidiary which has fastest and strongest development rate of Saigon Real Estate Corporation (RESCO), the Company’s success comes from its capability to continuously expand its land bank, as well as its strong project management capacity. The Company’s properties have a reputation for quality in a market in which many developers meet lower standards.

Intresco’s revenue in 2006 was approximately $25.5 million, a 41.4% increase from 2005.

Investment Thesis

Intresco is a successful real estate developer in Ho Chi Minh City, attributable to its proven ability to develop a good land bank and execute on projects. Real estate development is a proven successful business model in many markets which brings good returns to investors. We believe Intresco is an attractive investment opportunity for the Fund.

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, Ly Thai To 30-storey building, residential areas in Binh Chanh District, An Cu Building in District 2, Eco-Tourist Area in District 9 and luxurious 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. These are considered to be the two first residential buildings for middle-class in the An Phu - An Khanh municipality in District 2.

Developing Residential Communities

Intresco has also develops 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 were visionary projects of Intresco are considered the most well-organized, well-developed and pioneer projects in the areas.

Developing Hi-end Residential Projects

For hi-end market segment, the company has projects undergoing along Saigon riverside. It also plans to build luxurious, western-style villas area in District 9.

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 and Bac Dinh Bo Linh Apartment Block

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, the bond face value is VND 100,000

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

April 2007: Chartered capital increased to VND 100.253 billion due to converted bonds and from retained earnings

July 2007: Intresco plans to raise VND 100 billion for its chartered capital