VietNamNet Bridge – The lack of investment capital and gloomy domestic market
have brought golden opportunities to foreign investors to buy real estate
projects for knock-down prices.
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Park City in Ha Dong district in Hanoi, Splendora in Hoai Duc district and AIC
urban area in Me Linh are the three out of tens of real estate projects
Vietnamese developers have transferred to foreign investors.
The involved parties in the transfer deals declined to reveal the value of the
projects, but the sums of money Vietnamese developers got from the deals were
much lower than the money they had to pay to obtain the right to develop the
projects.
In 2007, when the real estate market was in its golden age, South Korean
Keangnam Group had to register a $1.05 billion project, pay VND1 trillion dong
for the land use right and donor $5 million for social and charity activities of
the city in order to obtain the 4 hectare land plot on the Pham Hung Road. Here
on the land area, the group has developed Keangnam Landmark Tower, the highest
tower ever in Vietnam.
However, things seem to be much easier for investors now to jump into the
Vietnamese real estate market. As for Park City project, Malaysian Perdana Park
City bought 100 percent of stakes from VIDC, a joint venture between Perdana
Park City (Singapore) and Vinaconex Hoang Thanh, to get the right to develop the
project.
The value of the deal has not been made public. Both Perdana Park City Malaysia
(the buyer) and Perdana Park City Singapore (the seller) are the subsidiaries of
Samling Group, the biggest wood group in Malaysia.
Park City project is expected to cover an area of 77 hectares in Ha Dong
district. It has been listed in the investor’s business strategy by 2019. The
representative of Perdana Park City has affirmed that the investor has
sufficient financial capability to implement the project, and will not let the
project stay on… paper like the joint venture in the past.
As for Splendora urban area project, Vinaconex, the investor, has been seeking
domestic and foreign investors who want to buy its stakes in An Khanh JVC, the
investor of the project. Vinaconex contributed 50 percent of An Khanh JVC’s
chartered capital, $42.5 million. The urban area is expected to cover an area of
240 hectares.
The announcement on transferring stakes in An Khanh JVC was made in late 2012. A
senior executive of Vinaconex said some foreign investors have sent words
intimating that they want to buy the stakes, but no official agreement has been
made so far.
The owner of AIC urban area project in Me Linh project many feel regret the deal
of transferring 70 percent of stakes to a Malaysian partner. However, this
proves to be the best choice for AIC Company, the developer, because it does not
have capital to implement the project, though it kicked off the implementation
in late 2009 already.
AIC urban area covers an area of 100 hectares, where the investor planned to
build high rise apartment blocks, villas and houses. The problem is that the
investor has not made anything with the project so far, even though it has
mobilized capital from secondary investors. The project had been left untouched
over the last many years until January 27, 2013, when its construction was
resumed after an anonymous foreign investor agreed to provide capital.
Compiled by C. V