Developers put money where mouth is

One of largest foreign direct investment projects in terms of committed capital is $4.2 billion Ho Tram Strip integrated resort project developed by Canada-based Asian Coast Development (ACDL) whose construction was kicked off in 2010.

About the project’s feasibility, from late 2010 until present the developer met with local media organisations for several times showcasing their determination for project continuation. Most recently on December 7, 2011 ACDL’s chief executive officer Lloyd C. Nathan revealed the project has disbursed $430 million and engaged in first phase construction which involves 541 luxury guest rooms, a spectrum of world-class restaurants and entertainment amenities, a conference centre, a retail area, and a fully operational large-scale entertainment facility slate to come online in February 2013.

He said the project pace would not be changed within the next 10 years and the management have worked on project’s expansive marketing campaigns in diverse markets such as Hong Kong, Singapore, Taipei and Jakarta.

Ho Tram Strip is reported divided into two zones. Zone 1, consisted of two phases, is managed by MGM Mirage Hospitality International Holdings Limited involving two upper-tier hotels with more than 1,100 rooms and an 18-hole golf course opposite to the resort. Zone 2 is managed by Pinnacle Entertainment which holds 26 per cent stake tantamount to $95 million in ACDL involving three resorts with 1,200 rooms (no construction within the next two years).

According to a Ho Tram Strip project representative, half of first-phase’s investment capital was loans, of the remaining capital portion US-based Harbinger Capital which holds ruling stake in ACDL plays decisive role to the project’s finance.

Besides Ho Tram Strip, the province is home to over $4 billion, 300 hectare Saigon Atlantis Hotel which is developed by US-based Winvest Investment Company Limited.

By scale, Saigon Atlantis is bigger than 164ha Ho Tram Strip. The project was licensed in April 2006 with just $300 million total investment. Later, Peter Luu, one of the project’s major stakeholders asked to scale up investment to $4.1 billion.

The project will involve hi-end villas, 1,200 hotel rooms and a casino.

About the project’s latest progress, Winvest Investment Company Limited’s deputy general director Tran Van Son said the developer was given 87ha ‘clear land’ and the provincial authorities are in the process of clearing other 7.7ha in project’s core area.

In respect to project’s feasibility, Son said construction would get underway right after the investor was given integrated land area since the three major stakeholders were financially ready.

“Winvest will walk insteps with the project which enjoys a premier location in the gateway to Vung Tau city centre, next to national highway 51 and long coastal stretches which are auspicious factors to lure visitors,” said Son.