Bitexco will completely divest from the Ben Thanh quadrangle project.

(NADS) - According to the agreement between the parties, Bitexco will transfer all capital contributions at Saigon Glory to Hanoi Phuong Dong Real Estate Company Limited.

According to research, Saigon Glory, established in June 2018, is the investor of the One Central HCM project, located on an area of ​​8,600 m² in the Ben Thanh quadrangle, opposite Ben Thanh market (District 1, Ho Chi Minh City). This is one of the most prime locations in Vietnam with four street frontages: Pham Ngu Lao, Calmette, Le Thi Hong Gam and Pho Duc Chinh.

Current status in December 2023 of One Central HCM - one of the most prime real estate projects in Saigon. Photo: Quynh Tran

Previously, Bitexco mortgaged all of its capital contribution at Saigon Glory to Techcombank as collateral for 10 bonds worth VND10,000 billion issued by Saigon Glory, with maturity dates from June 2025 to November 2026. In this divestment deal, Bitexco committed to continue to fulfill its obligation to pay principal and interest on 10 bonds from September 1, 2024 to June 12, 2025, along with interest for the payment period of June 18, 2025.

According to the latest agreement, Bitexco will transfer all of its capital contribution in Saigon Glory to Phuong Dong Hanoi Real Estate Company Limited. Phuong Dong Hanoi Company will also continue to be responsible for the principal payment for the period of June 18, 2025 and additional financial obligations thereafter.

Regarding the project in the Ben Thanh quadrangle One Central HCM is attracting much attention, it originated from The Spirit of Saigon, with an initial investment of about 500 million USD. The project includes two towers connected by a base, in which the 55-storey West tower serves as office space for rent and hotel, while the 48-storey East tower is for apartments and hotel.

After the basement construction phase from 2012-2013, the project was temporarily suspended. By mid-2020, The Spirit of Saigon was restarted, but in early 2021, the project was transferred to Masterise Homes and renamed One Central HCM. The project continued to be built, but after going through many changes of investors and names, there were delays in progress.

In a letter to bondholders earlier this year, Mr. Vu Quang Hoi, Chairman of Bitexco Group, said that Saigon Glory and the Ben Thanh Quadrangle project were facing many difficulties in terms of legal and financial obligations, making the handling of collateral assets complicated. He proposed extending the principal and interest payment period to give the company more time to restructure its finances, promote investment and construction, and soon generate revenue for the project. In the end, 10 bond lots were extended by 1-2 years, with the interest rate reduced to 8% per year.

One Central HCM project stops construction from the end of 2022. Photo: Thanh Tung

Bitexco Group LLC has decided to transfer 100% of its capital contribution at Saigon Glory LLC, the investor of the One Central HCM super project, to Phuong Dong Ha Noi Company. This enterprise was established in mid-2019, headquartered in Tran Hung Dao Ward, Hoan Kiem District, Hanoi City, with Ms. Tran Thi Minh Hieu as the legal representative and General Director.

Source: https://nhiepanhdoisong.vn/bitexco-se-thoai-von-hoan-toan-tai-du-an-khu-tu-giac-ben-thanh-15178.html