Domestic developer NovaLand has submitted a proposal to the Ho Chi Minh City People’s Committee to be the developer of the golden land area located on 164 Dong Khoi street in the heart of the second city.
The land was previously invested by Hong Kong Land, the real estate development arm of Bermuda-based Jardine Matheson Group and its partner, Japan’s Sumitomo Realty & Development.
This consortium proposed to pump more than $335 million into the site. However, after long delays, the foreign investors decided to withdraw from the project due to difficulties faced in land clearance and compensation plans.
According to a source from the Ho Chi Minh City Department for Planning and Investment, NovaLand and its subsidiary Nova Bac Nam 79 has set up a joint venture proposing to be the new developer of the project.
Nova Bac Nam 79 is known for its many key real estate projects, including the Madison complex and Park Avenue in Ho Chi Minh City and Ghenh Ban high-end villa resort in the central city of Danang.
NovaLand is a respected developer with dozens of large-scale projects such as Sunrise City in Ho Chi Minh City’s District 7, and Lexington Residence, Tropic Garden and The Sun Avenue in the city’s District 2.
Ho Chi Minh City now has around 20 prime land plots in a total of 50 hectares located on the busiest streets, which have been offered to attract investors. However, due to a variety of reasons, the selection of investors has been delayed for a long period of time. The prime reason was the difficulties faced in land clearance and compensation, and the complicated procedures required to proceed with the projects.
Although many have been taken up by prestige investors such as Vingroup with Vincom A and B or Bitexco with The One. Recently Tan Hoang Minh Group was chosen as the investor for a 3,000-square metre project at 23 Le Duan street.
In the second city, many others are on offer, such as the land plot between Nguyen Sieu – Hai Ba Trung and Dong Du streets, and another plot between Le Thanh Ton, Thi Sach, Cao Ba Quat and Dong Khoi streets.