Bitexco will sell all capital of Saigon Glory - project owner on "golden land" of Ho Chi Minh City

Saigon Glory Company Limited is the investor of the 6-star hotel project The Spirit of Saigon (Ben Thanh Quadrangle), 100% owned by Bitexco Group Company Limited.

Bitexco Group has just agreed to transfer 100% of its capital contribution at Saigon Glory Company to Hanoi Phuong Dong Real Estate Company Limited.

Phuong Dong Hanoi Real Estate Company was established in mid-2019, headquartered in Tran Hung Dao Ward, Hoan Kiem District, Hanoi City. Ms. Tran Thi Minh Hieu holds the role of Legal Representative and General Director of this enterprise.

Saigon Glory has issued 10,000 billion VND in bonds since 2020. The collateral is Tower A of The Spirit of Saigon project (opposite Ben Thanh market, District 1, HCMC) and Saigon Glory's capital contribution.

Bitexco will transfer the ownership of The Spirit of Saigon project to Saigon Glory (Photo: Hai Long).

Regarding the bond obligation, Bitexco commits to pay the principal and interest of 10 bond lots from September 1, 2024 to June 12, 2025 and the interest of the payment period on June 18, 2025. Meanwhile, Hanoi Phuong Dong Real Estate Company will continue to pay the principal of the payment period on June 18, 2025 and the principal and interest after this period.

Regarding the collateral for the VND10,000 billion bond lot, after the transfer, Hanoi Phuong Dong Real Estate Company will continue to mortgage its capital contribution at Techcombank to ensure bond obligations.

In case the capital contribution is released by the bank after 90 days but the transfer transaction is not completed, Bitexco will re-mortgage the capital contribution within 7 days. In addition, the assets attached to the land formed in the future in Tower A including the office area and hotel will still be retained as collateral.

The Spirit of Saigon project has an extremely favorable location, with a frontage on 4 streets: Pham Ngu Lao - Calmette - Le Thi Hong Gam - Pho Duc Chinh, in the "center of the center" of District 1 and near famous landmarks such as the Museum of Fine Arts, Ben Thanh Station, and 23/9 Park.

In 2013, Ho Chi Minh City approved Bitexco Group to invest in the above project with an area of 8,537m2. The project was then started by contractor Coteccons and was expected to be completed in 2017. However, the project was halted several times after that, and there is no sign of it restarting yet.

In 2020, Saigon Glory Company mobilized VND10,000 billion in bonds through 10 odd lots, with a term of 3-5 years and a minimum interest rate of 11%/year for the first year. Of which, VND5,000 billion will mature in June-July 2023 and VND5,000 billion will mature in August 2025.

In October 2022, after the "scandal" about the ability to pay bonds in the financial market related to the arrest of the leader of Van Thinh Phat Group, Saigon Glory committed to buy back all 10,000 billion VND of these bonds before maturity, in 2 phases.

Last April, Saigon Glory reported on the payment of principal and interest of bonds in 2022 to the Hanoi Stock Exchange. In 2022, the company had 40 interest payments for the 10 lots issued above, with a total payment of nearly VND 1,110 billion.

Earlier this year, Saigon Glory successfully extended the payment period for the above 10 bond lots by 1-2 years, to 2025-2026. The interest rate was also reduced to 8%/year.

Source: https://dantri.com.vn/bat-dong-san/bitexco-se-ban-het-von-saigon-glory-chu-du-an-tren-dat-vang-tphcm-20240922202754194.htm