BIDV puts real estate project’s debt on sale for $174 million

BIDV is putting Kenton Node on sale (Source: NDH)

The asset for auction is the land use right and assets attached to the land at the Kenton Node project located at Nha Be district, Ho Chi Minh City. This asset was mortgaged at three banks, namely BIDV, MSB, and PVCombank, with 58 per cent owned by BIDV with the total valuation of VND4.06 trillion ($176.5 million).

Located opposite the Hoang Anh Gia Lai apartment project and near Phu My Hung urban area, Kenton Node was previously known as Kenton Residence and was expected to become a billion-dollar new urban project in the southern Ho Chi Minh City.

Covering on an area of 10 hectares, the project has three areas (Plaza, Sky Villa and Residences) with nine buildings, 16 towers, and 1,683 apartments with full utilities. Besides, the project would also house a 5-star hotel system and 586 condotel units. The highlight would be the theatre. The project has a total initial investment capital of $300 million.

The construction was started in 2009 and Kenton Node (then Kenton Residence) opened the first phase of sales with 100 apartments. The selling prices were between $1,566 and $1,250 per square metre. According to the information released by the investor, there were 64 successful transactions. The second phase of sales was organised in July that year, offering 178 apartments.

At the time, the real estate market was showing signs of a freeze and almost all transactions were stopped. However, the investor still implemented the construction of the remaining blocks and maintained prices.

In 2011, the construction was suspended due to difficulties in finance and sales. Two years later, the company refunded nearly 100 customers in full and started looking for a new solution for the project. This situation marked the first delay of the project.

In May 2017, thanks to mobilising capital from a strategic partner, the construction was resumed under the new name Kenton Node with a number of adjustments to its design. The investor announced intentions to inject $300 million to continue developing the project. At the time, the resumption of the construction of Kenton Node followed the recovery of many other projects.

The problem is that since the middle of 2018, the construction was delayed once more without public explanation, leaving the project unfinished after more than 11 years.

Tai Nguyen Trading Manufacturing Construction was established in July 2006 under a business co-operation contract between Tai Nguyen Company and Vietnam National Garment and Textile Group (Vinatex).