Tan Hoang Minh persists with luxury property projects

Despite delays in existing projects, the developer is pushing ahead with more luxury constructions

The group has claimed is finishing legal documents to start the projects and has no intention of changing their function or transferring them to other investors despite rumours to the contrary.

In its press briefing held last week in Hanoi, Tran Hong Son, deputy general director of Tan Hoang Minh said that the group was finishing documentation for starting D.’ San Raffles in Hang Bai street, Hoan Kiem district, and D.’ Le Roi de Solei in Dang Thai Mai street, Tay Ho district by the second quarter of 2015.

According to Son, the delay of these projects has nothing to do with the financial capability of the developer. Instead, it has been caused by the changes in Hanoi’s zoning as per the revised Hanoi Master Plan when it merged with neighbouring province of Ha Tay in 2008. In addition, due to changes in terms of building heights in inner Hanoi as regulated by the municipal authorities, documentation for the projects had been lengthened.

At D.’ San Raffles, the land clearance and compensation was finished in 2011, but its construction was delayed until the approval of the Master Plan of Hanoi and the regulation on high-rise buildings in Hanoi’s centre.

This project received its licence for an eight-storey building in March this year. However, in order to secure this licence, the developer had to negotiate with the local residents and needed approval by a 27-member council of architects.

When making land clearance, the developer had to compensate previous residents with VND1 billion ($48,000) per square metre, which was the highest compensation price at that time. This price was calculated based on the plan to build a 15-storey building like the nearby Sun City. However, after the changes in zoning D.’ San Raffles was only granted approval for an eight-storey construction.

“This means that the investment returns on this project were dramatically reduced, and we may even incur losses. However, we are determined to make this the most luxurious office, retail and residential building in Hanoi city centre,” Son claimed.

D.’ San Raffles was designed in a French neo-classical style.

The developer also received the final documentation to proceed with D.’ Le Roi de Soleil in Dang Thai Mai street in September this year, after five years of red tape procedures. The project will consist of two 25 storey residential buildings with five basement levels, connected by an eight-storey service building.

According to Tran Nhu Trung, another deputy director of Tan Hoang Minh, the group was still willing to proceed with the developments because of their prime locations.

Tan Hoang Minh is also pushing forward with the completion of their D.’ Palais de Louis and D.’ Le Pont D’Or projects.

D.’ Palais de Louis, which consists of 244 luxury apartments, is in the finishing stages. The project’s technical infrastructure system and the first 15 show apartments will be completed by mid-2015.

The group has returned all the deposits for 60 potential buyers and will re-launch sales next year. Despite difficulties in sales, Trung denied the rumours that the developer would convert the project into a hotel.

Meanwhile D.’ Le Pont D’Or has 308 apartments still under construction with semi-top down technology and is scheduled for completion by the end of next year.