Goldman Sachs and the Qatar Investment Authority are reported to have bid for Keangnam Hanoi Landmark Tower, the highest building in Viet Nam's capital city whose value is estimated at more than US$1 billion, according to the Korea Economic Daily.

Keangnam Hanoi Landmark Tower from a corner of the capital city. The building is estimated at more than US$1 billion. Photo tapdoantoancau.com

The 72-storey landmark was recently on the news in relation to Mr. Sung Wan-jong, the former head of construction firm Keangnam Enterprises who killed himself after investigations on secret dealings with top Korean politicians.

The operating company for the Ha Noi building was allegedly involved in window dressing of the accounting books to hide mounting debts during its construction.According to real estate industry sources on April 19, Goldman Sachs and the Qatar Investment Authority had recently offered to acquire the building to the New York office of Colliers International, the lead manager in the sale of the building.

Goldman Sachs will assume the project financing debt at 1 trillion won and create a special-purpose company to take over the building as the largest shareholder.

Given that Keangnam Enterprises is under a workout programme and there is a possibility of contingent liabilities due to a high vacancy ratio of up to 40 percent, however, the investment bank is reviewing an idea of reselling it in the form of non-performing loan.

In contrast, the Qatari sovereign wealth fund offered that it would buy the whole building at $800 million for long-term ownership.

Korea Economic Daily