Many owners of units at the Cocobay Da Nang condotel project have proposed to convert profits owed by Thanh Do Company into land or houses at Cocobay, according to a statement from Thanh Do.
Many owners of products at the Cocobay Da Nang condotel project have proposed to convert their units in lieu of profits. — Photo vietnammoi.vn
At the end of November, Cocobay Da Nang announced that the company had terminated the payment of committed profits of up to 12 per cent each year signed with customers due to cashflow difficulties.
The customers at Cocobay Da Nang had twice received notice from the investor about their options going forward.
One of the options is to transform their holdings from condotel apartments to condominiums, and the owners must pay an additional 15 per cent on the original price.
The owners have not accepted Thanh Do’s option, so they countered with the above proposal.
“If Thanh Do Company agrees and SHB Bank approves the plan, we will negotiate with Thanh Do Company on the price, conversion method and related legal issues,” said Nguyen Hai Long, an owner who has invested tens of billions of dong in Cocobay Da Nang, representing a group of 700 owners of condotel products at the project.
“An independent evaluation unit, approved by SHB Bank, will objectively assess assets that Thanh Do can use for the conversion,” he said.
Solutions for this issue are under discussion between the group of 700 owners and Thanh Do, with representatives being Nguyen Hai Long and Mai Huy Tan, Chairman and Director of Vietnam-Germany Bridge Co, Ltd, who has invested up to VND600 billion in Cocobay Da Nang, including a VND400 billion loan from SHB bank.
Tan said the 700 customers are the owners of high-value assets such as Nam An villas, adjacent seven-storey boutique hotels and hundreds of five-star apartments. They hold over 50 per cent of the total value of sold real estate products at Cocobay Da Nang. — VNS
Investment in condotels remains appealing despite defaults in profit commitments by property developers, but a clear legal framework is needed to protect investors’ rights, according to experts.
Though investment in condotels is expected to benefit the economy and the real estate sector, the condotel market is facing major challenges, heard attendees at a forum on the legal corridor for the condotel segment.