Mega-resort deal downsized

The first phase of South Hoi An is said to be similar to the first phase of Ho Tram Strip project opened last month,
pictured abovePhoto: Le Toan

An anonymous source of the central province of Quang Nam’s Chu Lai Economic Zone Management Authority said VinaCapital had proposed a one third reduction of South Hoi An’s land site, downscaling to 1,000 hectares from a current 1,500ha. Furthermore, he said, the developer had asked permission from the provincial people’s committee to delay the completion of the entire project to 2035.

“VinaCapital thought that the change of the project’s development plan will be supportive in finding new partners to replace Genting,” said the source, adding that the investor was intent on finding a major partner within the third quarter of this year.

VIR did not contact successfully with VinaCapital director of public relation Nguyen Duc Huong last week.

VinaCapital and Genting Malaysia Berhad (GENM), a subsidiary of Genting Group, gained an investment certificate to develop the $4 billion integrated resort in Quang Nam three years ago. VinaCapital holds an 80 per cent stake in the joint venture, with GENM holding the remaining 20 per cent.

According to Quang Nam Provincial People’s Committee, the project consists of five-star hotels, resorts, villas and a gaming facility for foreigners.

VinaCapital was founded in 2003 and is now managing $1.5 billion of assets in Vietnam. South Hoi An is VinaCapital’s largest property project in Vietnam, and one of only four licenced integrated resort projects in the country having the total investment capital exceeding $4 billion.

VinaCapital and Genting previously planned to start the construction of the project last year after completing site clearance work. However, the construction has not begun yet, as Genting suddenly announcing their withdrawal from the project in September 2012, forcing VinaCapital to find other partners.

“Actually, VinaCapital introduced the local authorities to some foreign companies to replace Genting. But none of them has seriously discussed about investing in the project,” said the source.

He said VinaCapital was still committed to pursuing the project and had made plans to open the first phase of the project in the fourth quarter of 2015.

The first phase covers an area of 23ha and will comprise 500 hotel-rooms, 90 gambling tables and other tourism facilities. This is said to be similar to the first phase of Ho Tram Strip project opened last month by Canada’s Asia Coast Development Limited in the southern province of Ba Ria-Vung Tau.