HCM City, Lotte Group ink deal to build Thu Thiem Eco Smart City

Thursday, Jul 27, 2017 07:38

Representatives from HCM City People’s Committee and the Lotte Group joint-venture sign a contract on the construction of Thu Thiem Eco Smart City in District 2. — Photo VNA

The HCM City People’s Committee and Korean conglomerate Lotte Group on July 25 signed a contract on the construction of the Thu Thiem Eco Smart City in District 2.

The 74,420-sq m project in the core of the Thu Thiem New Urban Area will cost VND20.1 trillion (US$884 million) in addition to compensation costs to be paid for use of land.

Nguyen Thanh Phong, chairman of the city’s People’s Committee, and Shin Dong Bin, chairman of Lotte, attended the signing ceremony.

Phong praised the group, which has had many major investments in Viet Nam and become a well-known brand in the country.

He vowed to continue creating favourable conditions for foreign investors, including the Lotte Group, to help them operate effectively and profitably in the city.

The Lotte Group, which had been pursuing the project for years, received approval in 2014. Construction will begin as early as next quarter.

It will feature a trading-financial-banking centre, hotels, an office tower, and serviced and residential buildings on 50,120sq.metres. The remaining area will be used for roads and other infrastructure.

Construction on the project, licensed for 50 years, is expected to take six years.

Affiliate companies like Lotte Asset Development Co. Ltd., Lotte Shopping Co. Ltd., Hotel Lotte Co. Ltd., and Lotte Engineering & Construction Co. Ltd. will participate in the project.

Lotte has escrowed around VND2 trillion ($88 million) for fees for six lots of land.

The developer is paying for and building some of the infrastructure, which will ease the burden on the city, which is paying off a VND29 trillion ($1.28 billion) loan to develop the Thu Thiem peninsula.

The interest on the loan is VND2.9 billion a day, according to the city.

The 657-ha peninsula is located to the east of the Sai Gon River, and is adjacent to Districts 1, 7, 9, and Binh Thanh.

It is expected to become a hub for culture, entertainment as well as financial and commercial services.— VNS

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