Gaw Capital resuscitates plan for Park City project

Park City would make a significant addition to Gaw Capital Partners’ property portfolio-Photo: Le Toan

In mid-2015, Gaw Capital Partners announced that it had acquired existing real estate projects in Vietnam from property funds Indochina Land Holdings 2 and 3. Although the company did not specify how much was paid for each of these projects, Gaw Capital Partners said that it paid a total of $106 million for the following four properties: Indochina Plaza in Hanoi, Hyatt Regency Danang, Malibu Villas Quang Nam, and Park City in Ho Chi Minh City.

Of these, Park City is the largest, but has yet to be implemented. A representative from the real estate firm confirmed this news to VIR, saying that Gaw Capital Partners had successfully obtained its business registration certificate, and the investment certificate had been submitted for amendment.

“Our local team has attended regular meetings with local authorities and has submitted the revised project design to the Ho Chi Minh management authorities,” said the company spokesperson.

Park City was initially granted an investment certificate in 2008 as a joint venture between Saigon Development Joint Stock Company and Saigon Entertainment Park Holding Pte Ltd from Singapore. The development was intended to be a multi-functional entertainment centre.

The 49.5 hectare project’s investors were replaced by Indochina Land Holdings 2 and 3 in 2009, and in 2010 its function was changed into a trading centre and residential development.

Faced with investor restructuring, difficulties in land clearance and compensation, and the downturn of the real estate market, the project has remained in limbo ever since.

Located in front of Nguyen Van Linh road, the project is 20 minutes from the city centre. According to its investment certificate, which was amended on February 26, 2009, Park City had the total investment capital of $310 million and a lifespan of 50 years.

The investment in Park City marks a significant move by Gaw Capital Partners to increase its presence in Vietnam. The real estate firm also announced last year its investment in a mixed-use project, the $1.2-billion Empire City development in Ho Chi Minh City, through its Gateway Real Estate Fund III. Gaw Capital Partners will implement this project via Empire City Limited Liability Company - a joint venture between Tien Phuoc Real Estate, Tran Thai Real Estate, and Denver Power - a member of Gaw Capital Partners.

Located in Ho Chi Minh City’s Thu Thiem new urban area, Empire City will consist of a deluxe shopping mall, a 5-star hotel, an office building, and a modern condominium, as well as an 86-story multifunctional tower, which would be the tallest building in Vietnam once completed.