Domestic developers take over golden land

Novaland, the developer of more than 20 projects in Ho Chi Minh City, has recently submitted a proposal to the Ho Chi Minh City People’s Committee to become the developer of the golden land plot at 164 Dong Khoi Street. The land was previously invested by Hong Kong Land, the real estate development arm of Bermuda-based Jardine Matheson Group, and its partner, Japan’s Sumitomo Realty&Development.

The previous developers confirmed that it could not continue this project due to difficulties in land clearance and compensation.

Another reason that encourages domestic developers to join the race is, many of them are strongly developed and have enough capacity to take on large scale projects by themselves.

BRG Group recently acquired more than 38% stake on Tran Phu Printing Company, a state-owned firm having more than 19,000 square metres in a premier venue of Ho Chi Minh City. Other investors are Vingroup with Vincom A and B, and Bitexco Group with The One.

Meanwhile, some other domestic investors are joining with foreign partners to co-develop golden land plots.

Dai Tan Phu has teamed up with the Republic of Korea’s Jimiro to co-invest in a US$500 million complex located in the triangle land neighbouring Tran Hung Dao, Pha, Ngu Lao, and Nguyen Thai Hoc, streets in District 1.

Van Thinh Phat has recently co-operated with Hong Kong Larkhall Holding to develop the golden land-surrounded by Ngo Duc Ke, Nguyen Hue, Huynh Thuc Khang, and Ho Tung Mau streets- in the heart of Ho Chi Minh City.

The more than 1.3 hectare land is located next to famous projects such as Bitexco Financial Tower, Sunwah Tower, and Duxton Hotel in Nguyen Hue street.

Van Thinh Phat is a famous name for large scale developments such as Times Square, Union Square, and the US$6 billion Mui Den Do urban development in Ho Chi Minh City.

Ho Chi Minh City now has around 20 prime land plots with a total area of 50 hectares located in the city’s busiest streets, which have been offered to attract investors. However, due to a variety of reasons, the selection of investors has been delayed for a long period of time. The main reason given was the difficulties faced in land clearance and compensation, and the complicated procedures required to proceed with the projects.

Those on offer now include the land plot between Nguyen Sieu, Hai Ba Trung, and Dong Du streets, and another plot between Le Thanh Ton, Thi Sach, Cao Ba Quat, and Dong Khoi streets.