On February 10, the Department of Finance issued Official Letter No. 3730 to the Ho Chi Minh City People’s Committee regarding Lotte Properties HCMC Company’s proposal for the smart complex project in the Thu Thiem New Urban Area.
Earlier, Lotte Properties HCMC Company had sought official feedback on its plan to mobilize external investors for up to 35 percent of capital contributions and to adjust ownership ratios among Lotte Group members following the participation of new investors.
Lotte Properties HCMC Company is currently in talks with potential investors, on the basis that the Ho Chi Minh City People’s Committee permits external participation at a 35 percent stake. Once an investor is formally identified, the company will submit an official application to the People’s Committee for appraisal and approval.
The company also provided a list of potential investors currently under discussion and a plan to adjust the ownership ratio among members of the Lotte Group. The investors mentioned are Son Kim Real Estate Investment Joint Stock Company; Huong Viet Investment Consulting Joint Stock Company; and Phat Dat Real Estate Development Joint Stock Company.
The investor hopes to receive a positive and official response from the Ho Chi Minh City People's Committee and the Department of Finance regarding the proposal. This will allow the company to contribute to the formation of an international financial center in the Thu Thiem New Urban Area when the project is restarted.
After reviewing the investment project implementation contract and the directives of the Ho Chi Minh City People's Committee leadership, as well as current regulations, the Department of Finance recommends that the Ho Chi Minh City People's Committee issue a written response to Lotte Properties HCMC Company approving the proposal.
In principle, investors are allowed to adjust the ownership ratio of capital contributions among member companies within the Lotte Group and transfer up to 35 percent of the capital contribution to other investors, while the project is not yet operational, provided it meets the conditions stipulated in Clause 4, Article 52 of Government Decree 115.
Lotte Properties HCMC Company is tasked with identifying the investor receiving the transferred shares and capital contribution, and submitting a formal proposal for appraisal in line with regulations. The company must also promptly fulfill its financial obligations, carry out investment activities as outlined in the Investment Registration Certificate, and bring the project into operation without delay.
In addition, the investor has proposed several adjustments, including exemption from the 5.4 percent supplementary fee stipulated in Government Decree No. 103 and an extension of the land use fee payment deadline.
It is known that the smart complex project Eco Smart City is located in functional area 2A of An Khanh ward. The project was proposed for investment in 1997 with a total capital of over VND20,100 billion. This complex is planned to include a financial center, service area, and multi-functional residential area.
In July 2017, Lotte signed a contract to implement the project with the Ho Chi Minh City People's Committee and held a groundbreaking ceremony in September 2022. The project comprises 11 towers, each 50 stories high, on an area of over 7.4 hectares, and was once considered a significant landmark in the heart of Thu Thiem.
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