VietNamNet Bridge - Qatar Investment Authority (QIA) has decided to pay at least $800 million to buy a 72-storey Keangnam Hanoi Landmark Tower, according to Korea Herald.

Korea Herald cited some sources as saying that the QIA on May 13 informed its decision to Colliers International, which is responsible for selling the building at $800 million, the minimum price set by the Korean court.

QIA initially offered $600 million, but then it decided to raise the offer to $800 million.

The creditors of this building, five banks and 10 financial institutions in Korea, are said to agree to conduct negotiation with QIA before July. If the negotiation succeeds, QIA will be the preferred bidder, which will enable them to shorten the transaction time.

Keangnam complex includes two 48-storey apartment blocks with 922 apartments and a 72-storey complex with an entertainment center, offices and hotel.

The A-class offices cover the 12th-46th floors, while there are high-end service apartments for lease from the 48th to 60th floors. Intercontinental Hotel covers the 62nd -70th floor.

Keangnam was reported to invest 1.2 trillion won, or over one billion dollars, to build the building with the total use area of 610,000 square meters, of which 530 billion was borrowed from banks.

According to KBS Television, the project was believed to be a success with the apartment selling price sometimes reaching 3 million won (VND58 million) per square meter. The apartment blocks of the building are 70 percent occupied.

However, experts said the high borrowing proportion was the biggest problem of the project because this led to financial imbalance.

PV