The Sailing Quy Nhon - a "scandalous" project with many controversies that has changed its name many times
Recently, a project with a very fancy name "The Sailing Quy Nhon" has suddenly been widely advertised on the media, attracting public attention. This is a 5-star project on the Quy Nhon coast with a valuable panoramic view, 100% of the apartments have sea views. On real estate forums, the price of this project is advertised from 67 million VND to 70 million VND/m2.
The project is developed by the investor Do Thanh Real Estate Investment and Development Joint Stock Company (Do Thanh Company). The Sailing Quy Nhon is located on plot number 299, map sheet number 28, Le Duan Street, Ly Thuong Kiet Ward, Quy Nhon City. Notably, this is the location of a project that had many scandals in the past, I-Tower Quy Nhon.
Remember in March 2021, the Inspectorate of the Department of Construction of Binh Dinh province announced that it had issued a decision to administratively fine Do Thanh Company 40 million VND for organizing the construction of the I-Tower Quy Nhon Trade - Service Center and Apartment project without a construction permit.
I-Tower Quy Nhon is built on land plot No. 299, map sheet No. 28, Le Duan Street, Ly Thuong Kiet Ward, Quy Nhon City, with an area of approximately 10,748m2. This project consists of 2 towers, 36 floors (563 apartments) and 41 floors (778 apartments). The project is expected to be completed and put into operation in the third quarter of 2022.
Not only was the I-Tower Quy Nhon project involved in a scandal due to being fined, it was also involved in “illegal sales”. At the end of January 2021, the Department of Construction of Binh Dinh province issued a warning that the I-Tower Quy Nhon project did not meet the conditions for selling future housing according to regulations. However, on the Internet, high-end apartments in the I-Tower Quy Nhon project were still being advertised for sale.
In July 2021, Do Thanh Company suddenly announced that it and its partner Wyndham Hotels & Resorts Group had signed a cooperation agreement to develop a 5-star project chain called Wyndham Sailing Bay Resort Quy Nhon (replacing the old name I-Tower).
At the signing ceremony, both sides expressed their goodwill to turn this project into the most luxurious destination in Quy Nhon. However, it is unclear why the name Wyndham has not appeared on the project's name in recent promotional campaigns.
Change name but not fate
After many name changes, the project implementation is still at a standstill, causing public opinion to question the capacity of Do Thanh Company. This unit was established in August 2015, with its headquarters located at 2 Truong Chinh, Ly Thuong Kiet Ward, Quy Nhon City. The director and legal representative is Mr. Le Cong That.
The initial charter capital of Do Thanh Company was only 50 billion VND with founding shareholders including Mr. Le Cong That (contributing 20% of capital), Ms. Le Thi Tuyet (contributing 50% of capital) and Mr. Le Cong Tuan Anh (contributing 30% of capital). By 2018, the company increased its charter capital 5 times from 50 billion VND to 250 billion VND. This number continued to increase to 850 billion VND by the end of 2020. Thus, in just 3 years from 2018 - 2020, the company increased its capital 17 times.
According to the investigation of the Journalist & Public Opinion newspaper, in addition to increasing capital, Do Thanh Company's liabilities have also continuously increased sharply. From less than 15 billion VND in 2019, the total liabilities of this company have increased 154 times to more than 2,300 billion VND by the end of 2022. Thanks to that, the total assets have also been "inflated" to 3,142 billion VND, 12 times higher than at the end of 2019.
According to many speculations, these moves by Do Thanh are to prepare for the construction of the I-Tower Quy Nhon project. After many years of struggling with the name I-Tower, it seems that Do Thanh wants to “take a gamble” with The Sailing Quy Nhon. However, the results are still to be seen.
In fact, Do Thanh Company has had no revenue for many years and still has to bear expenses leading to continuous losses. During the 5-year period (2016-2020), this unit has been losing money with a not too large amount of only a few hundred million VND. By 2021, Do Thanh Company made a profit again but the profit was only 33 million VND. After a year, this unit continued to lose money again.
Despite the grand introduction, the scandals in the past and the somewhat “ambiguous” name changes have made the public doubt the authenticity of the advertising information. Furthermore, the investor’s capacity is also an unknown factor as it has struggled for many years but still cannot complete the project despite the increasingly large debts.
Sunshine - Du Uyen
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