Bitexco steadfast in pursuing $1.35 billion urban project

Despite joint venture partner Emaar Properties' withdrawal, Bitexco wishes to go ahead with Binh-Quoi-Thanh Da urban area

According to newswire Cafef, the Ho Chi Minh City People’s Committee has submitted Bitexco’s proposed plans to the prime minister for approval.

The project was approved by the Ho Chi Minh City People’s Committee to develop a cultural, sports, and tourism center. In 2004, Saigon Construction Corporation was selected as the project investor. However, in 2007 the city decided to take the project away from this investor due to its lack of financial capacity.

In late 2015, Bitexco Group partnered with Emaar Properties PJSC to establish a joint venture to take over the project with an estimated total capital sum of VND30.7 trillion ($1.4 billion).

In September 2016, Emaar asked for unprecedented incentives for the project as well as asked the local authorities to calculate the exact compensation and land clearance expenses. However, in October 2016, the foreign investor officially quit the project.

According to the Land Law, within three years after the project is put into the land use planning, the acquisition of land must be completed or the project will have to be adjusted or cancelled. Thus, the Ho Chi Minh City Department of Planning and Investment submitted a document to the prime minister to ask for solutions. Before this, Bitexco expressed its development plan to the city’s leaders.

According to the initial plan, the project would cover a total area of 427 hectares. The construction would be developed in three phases. In the first phase, from 2016 to 2020, the investor would complete site clearance and basic infrastructure. Functional areas will be developed in phase two, from 2021 to 2025, and the whole project is scheduled to be completed in phase three, from 2026 to 2030.

Bitexco has a good track record in developing and completing landmark property projects in Ho Chi Minh City, including The Manor condominium complex and the 68-storey Bitexco Financial Tower. It is developing a twin tower complex in the second city that will be home to the first Ritz-Carlton hotel in Vietnam.

Its porfolio in Hanoi includes The Manor residential complex and 5-star JW Marriott Hanoi Hotel.

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