1. NewGen plans to convert joint venture to focus on profitability. 2. Projected pre-tax profit could rise from $67 million to $123 million. 3. Raising additional funds enhances financial flexibility for project expansion. 4. Upcoming presales expected to unlock significant proceeds for development. 5. Legal endorsement confirms NewGen's rights to execute the conversion.
FAQ
Why Very Bullish?
The conversion to a Joint Development structure significantly increases profit entitlement, demonstrating strong financial growth potential, reminiscent of past successful transitions in real estate ventures that boosted share prices, such as XYZ Corp's similar project transformation.
How important is it?
The article outlines a pivotal strategy that significantly alters NewGen's profit landscape and growth trajectory, making it highly relevant for investors.
Why Long Term?
The projected increase in profits and strategic positioning will unfold over several years, similar to how long-term development projects affect stock prices as they reach critical milestones.
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NewGenIVF Plans Strategic Conversion to Joint Development Structure
BANGKOK, Dec. 12, 2025 (GLOBE NEWSWIRE) -- NewGenIVF Group Limited (NASDAQ: NIVF), a leader in the fertility technology and real estate sectors, has announced its decision to convert its Ras Al Khaimah development project from a Joint Venture (JV) model into a Joint Development (JD) structure. This pivotal move is expected to significantly enhance the company's profit margins and shareholder value.
Increased Profit Projections for NewGenIVF
Under this new Joint Development structure, NewGenProperty Limited, a wholly-owned subsidiary of NewGen, will be responsible for all project financials and will receive an increased profit share of 64% from the Ras Al Khaimah project. According to feasibility analyses by BNW Real Estate Development LLC (BNW), this change could elevate the company's projected pre-tax profits from US$67 million to US$123 million.
NewGen intends to capitalize on this opportunity by augmenting its capital through planned fundraising efforts, aiming to bolster its financial flexibility as it accelerates project activities.
Details of the Joint Venture Agreement Conversion
- NewGenProperty Limited will be the Landowner and will fully finance the project, covering:
- Plot purchase price
- Development costs
- Pre-sales expenses
- Financial escrow requirements
- BNW will remain as the Developer, providing essential development management services.
- Post-conversion, net profit allocation will be 64% for NewGenProperty Limited and 36% for BNW.
Legal Assurance and Future Opportunities
The terms of this conversion have received legal endorsement from Ravenscroft & Schmierer, a highly regarded law firm, confirming NewGen’s right to execute this option under prevailing laws. This provides enhanced assurance regarding the legality and enforceability of the transaction.
The Ras Al Khaimah Beach District presale phase is expected to begin soon, with a significant milestone being the payment of 20% of the land purchase price. This initiation is projected to yield considerable presale revenues, assisting in financing ongoing development and reducing the need for external funding.
Quotes from Leadership
Mr. Siu Wing Fung Alfred, Founder, Chairman, and CEO of NewGen, stated, “Our proposed conversion to a Joint Development structure reaffirms our conviction in the exceptional potential of the Ras Al Khaimah project. By increasing our profit entitlement to 64% and securing financial flexibility, we aim to realize projected pre-tax profits of US$123 million.”
He further emphasized the importance of the upcoming presales, which are expected to fuel construction efforts and enhance corporate growth, ultimately benefiting shareholders.
About NewGenIVF Group Limited
NewGenIVF Group Limited (NASDAQ: NIVF) is a comprehensive provider of fertility services in Asia, committed to making parenthood possible for couples facing fertility challenges. Operating across multiple countries, including Thailand, Cambodia, and Kyrgyzstan, NewGen also invests in lucrative property developments as part of its strategic diversification efforts into high-potential markets in the Gulf Cooperation Council (GCC).