Australian firm eyes degraded apartment blocks in Ho Chi Minh City

August 04, 2016 | 20:17

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Australian property developer Sakkara Group expressed interest in renovating old and degraded apartment blocks in Ho Chi Minh City to acquire the potential land bank gained from these blocks.

The company’s intentions were announced by Sakkara’s chairman Neil Wilson at his meeting with Chairman of the Ho Chi Minh City People’s Committee, Nguyen Thanh Phong, on August 2.

According to Sakkara’s representative, during the investigation progress, the group found numerous old and degraded apartment blocks in the city which could be turned into a sizeable land bank for exploitation.

Chairman Nguyen Thanh Phong said that there are 474 apartment blocks in the city, 50 per cent of which is in a degraded condition. The city proposed the government to call for the involvement of both domestic and foreign investors in these projects.

Along with renovating degraded apartment blocks, Sakkara and its partners, namely Dragon Capital and GIC, also want to find investment opportunities and acquire land plots suitable for shopping centres, office buildings, apartments, and multifunctional buildings.

Phong stated that the city offers investors abundant opportunities, since it is currently calling for investment in new urban projects as well as subway trading zones.

Setting foot in Vietnam in 2004, through its subsidiary Sakkara Asia Pacific Project Holding Investment Real Estate JSC (Sapphire), Sakkara implemented numerous projects, including Holm (a residential community), Sanctuary Resort (a luxury beachfront residential community) as well as City Garden, President Place, and Centre Point.