Vietnam Real Estate Report
Established in November 2007, VNRE's mission is to bring information to the community of foreign investors who are looking for investment opportunities in Vietnam. We provide multi-dimensional information on the investment and business laws... Details about the projects, such as: Residential, Shopping centers, Office buildings, Resorts, Industrial and Infrastructure...
Land use purpose transfer brings golden opportunities to investors 20 Jun 2011, 6:36 am
VNRE - The land areas in Hanoi which industrial factories will leave after the relocations are always the aiming points of real estate developers, because they deserve the “golden mines” for the developers to dig.
It is really not easy to access the land areas, because everyone understands the benefits the land areas can bring.
To date, Vincom has been considered the most successful investor in developing the golden land areas. After succeeding with Vincom Towers built on the land area which was once the premises of the Tran Hung Dao Mechanical Engineering Factory, Vincom quickly realized the great potentials of similar land areas.
According to Thoi bao Kinh te Vietnam (Vietnam Economic Times), tens of hectares of golden land in Hanoi have been falling into the hands of the companies where Vincom is holding the controlling stakes. These include the two well known projects – Royal City and Times City – build on the places which were the Tool Factory No 1 and the March 8 Textile Factory in the past.
In order to attain the 12 hectare land plot of the Tool Factory No 1, the investor – the Hoang Gia Real Estate Development and Investment, where Vincom is holding the controlling stakes of 51 percent, had to pay a huge sum of money – 1300 billion dong. As such, every square meter of land here cost more than 10 million dong. However, analysts still believe that this was a good price for Hoang Gia, because the profits the investment project can bring would be much higher.
The sum of money that the Nam Hanoi Urban Development Joint Stock Company, where Vincom is also holding controlling stakes (55.95 percent) in order to get the land plot of the March 8 Textile Factory has never been revealed. However, real estate experts believe that it was nearly the same with the money paid by Hoang Gia for the 12 hectare land plot.
In order to implement the Vincom Village project, Vincom has to contribute 51 percent of total capital in the Sai Dong Urban Development and Investment Company. Sources said that Vincom makes the capital contribution in exchange for the right to exploit the large land plot with the area of over 183 hectares. Previously, the land plot was reserved for developing an industrial zone.
Regarding the Royal City project, the land plot that the investor got is large enough to build a complex of 4000 apartments, 200,000 square meters of shopping malls and 300,000 square meters of parking lots.
With the average price of over 40 million dong per square meter for apartments and the right to exploit the shopping malls and parking lots for a long term, it is not difficult to imagine how big the profits the investor would be able to pocket.
The huge profits for Vincom have prompted other real estate developers to follow the way of doing business. This explains why the managers of many industrial factories in the inner city, which have to relocate to the suburb areas, want to develop real estate projects on the land areas themselves, instead of giving the “golden land” to new investors.
Managers of the Sao Vang Rubber Company which owns the 6 hectare land area at No 231 Nguyen Trai Road are also considering the investment plan on the land area. In order to relocate the factory, the company will have to halt the production for 18 months, and it will need 800 billion dong to relocate the factory and set up things at the new factory.
The board of management of the company said that the company has signed an agreement with a partner on how to exploit the land area after the company leaves. The partner, who prefers to stay anonymous, said he accepts to pay 700 billion dong for the land.
Hundreds of factories and production workshops in the inner city of Hanoi have been asked to relocate in order to meet the requirements of the urban development. However, how to develop the golden land fund the factories will leave after the relocation remains a difficult question.
In 2009, the Hanoi People’s Committee announced the plan to relocate 422 industrial workshops which cause pollution. The workshops have the total land used area of 887.7 hectares, 209 of which are located in the inner districts and Son Tay town, mostly on “golden land areas”.
The problem is that many land use purpose transfer projects were wrapped up with the agreements among involved parties and the approval of the city’s authorities. Meanwhile, people believe that the land areas should have been put into auctions in order to find the most suitable investors.
Source: VnEconomy | Vietnamnet
It is really not easy to access the land areas, because everyone understands the benefits the land areas can bring.To date, Vincom has been considered the most successful investor in developing the golden land areas. After succeeding with Vincom Towers built on the land area which was once the premises of the Tran Hung Dao Mechanical Engineering Factory, Vincom quickly realized the great potentials of similar land areas.
According to Thoi bao Kinh te Vietnam (Vietnam Economic Times), tens of hectares of golden land in Hanoi have been falling into the hands of the companies where Vincom is holding the controlling stakes. These include the two well known projects – Royal City and Times City – build on the places which were the Tool Factory No 1 and the March 8 Textile Factory in the past.
In order to attain the 12 hectare land plot of the Tool Factory No 1, the investor – the Hoang Gia Real Estate Development and Investment, where Vincom is holding the controlling stakes of 51 percent, had to pay a huge sum of money – 1300 billion dong. As such, every square meter of land here cost more than 10 million dong. However, analysts still believe that this was a good price for Hoang Gia, because the profits the investment project can bring would be much higher.
The sum of money that the Nam Hanoi Urban Development Joint Stock Company, where Vincom is also holding controlling stakes (55.95 percent) in order to get the land plot of the March 8 Textile Factory has never been revealed. However, real estate experts believe that it was nearly the same with the money paid by Hoang Gia for the 12 hectare land plot.
In order to implement the Vincom Village project, Vincom has to contribute 51 percent of total capital in the Sai Dong Urban Development and Investment Company. Sources said that Vincom makes the capital contribution in exchange for the right to exploit the large land plot with the area of over 183 hectares. Previously, the land plot was reserved for developing an industrial zone.
Regarding the Royal City project, the land plot that the investor got is large enough to build a complex of 4000 apartments, 200,000 square meters of shopping malls and 300,000 square meters of parking lots.
With the average price of over 40 million dong per square meter for apartments and the right to exploit the shopping malls and parking lots for a long term, it is not difficult to imagine how big the profits the investor would be able to pocket.
The huge profits for Vincom have prompted other real estate developers to follow the way of doing business. This explains why the managers of many industrial factories in the inner city, which have to relocate to the suburb areas, want to develop real estate projects on the land areas themselves, instead of giving the “golden land” to new investors.
Managers of the Sao Vang Rubber Company which owns the 6 hectare land area at No 231 Nguyen Trai Road are also considering the investment plan on the land area. In order to relocate the factory, the company will have to halt the production for 18 months, and it will need 800 billion dong to relocate the factory and set up things at the new factory.
The board of management of the company said that the company has signed an agreement with a partner on how to exploit the land area after the company leaves. The partner, who prefers to stay anonymous, said he accepts to pay 700 billion dong for the land.
Hundreds of factories and production workshops in the inner city of Hanoi have been asked to relocate in order to meet the requirements of the urban development. However, how to develop the golden land fund the factories will leave after the relocation remains a difficult question.
In 2009, the Hanoi People’s Committee announced the plan to relocate 422 industrial workshops which cause pollution. The workshops have the total land used area of 887.7 hectares, 209 of which are located in the inner districts and Son Tay town, mostly on “golden land areas”.
The problem is that many land use purpose transfer projects were wrapped up with the agreements among involved parties and the approval of the city’s authorities. Meanwhile, people believe that the land areas should have been put into auctions in order to find the most suitable investors.
Source: VnEconomy | Vietnamnet
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Luke Donald to design first golf club in Vietnam project 20 Jun 2011, 6:34 am
VNRE - Those who follow developments in Asia closely, will be aware that shortly after assuming the mantle of the World’s highest ranked professional golfer, England’s Luke Donald bowed to the inevitable and announced he was designing his first course, in Danang, Vietnam. The project is known as Ba Na Hills, and Donald will be ‘designing’ the course in association with IMG Golf Course Services.
For those with more than a passing interest in design and golf course development in Asia, to give you some background here – it was announced back in November 2010 that Ba Na Hills had selected IMG to design its golf course, the press release from IMG stating at the time that ‘the first 18 holes at Ba Na Hills are now under detailed design. Construction is scheduled to start sometime in early 2011.’
Brit Stenson, who is the Director of Design for IMG, and presumably now the ghost-designer for Luke Donald, announced at the time that ‘Ba Na Hills presents an outstanding opportunity given its great mix of topography and existing vegetation. That mix will certainly make Ba Na Hills unique among the golf clubs in the Da Nang area, and I am sure it will become one of the best courses in Vietnam.’
In May 2011, it was further announced that IMG had also been selected as construction managers for Ba Na Hills – and that construction of the course was already underway. The General Director of Sun Group (the developer) stated that, ‘having previously selected IMG as the golf course designer for our Ba Na Hills project, there was excellent synergy to also appoint them in this construction management role.” He added that completion of the golf course was expected in late 2012.
Then came last weeks announcement that Luke Donald’s first foray into design would be the Ba Na Hills project in Vietnam, which we now know is already under construction. Donald, for his part, commented that he was “really happy with how the current design is looking on paper and looks forward to getting on site later this year to further refine the detailed design features.”
The fact that a client would engage IMG and wait until the course was under construction before ‘choosing’ which famous player would be held up as its ‘designer’ should come as no great surprise. Choice and range of celebrity players is, after all, the chief, and possibly only, benefit to engaging IMG Design as your course architects.
The fact that Ba Na Hills is already being built, and Luke Donald has only just become involved in the project and won’t be on site until later in the year, is going to make it more difficult when finished for IMG to hoodwink us into believing he really had anything to do with its design.
As we’ve reported previously on this site, modern golfers who chase the cash and team up with companies like IMG for signature projects had better not fall in love with design or plan to later establish standalone signature businesses, because poor work done in your name will be held against you down the track. One suspects Donald is more interested in playing professionally anyway than developing any serious design career, which is true of almost every present-day tournament celebrity.
Vietnam is a country with limited appeal to the traveling golfer, and every new project carries great expectation and hope that the wider tourism industry will benefit from its completion. So far results have been mostly underwhelming, and while we don’t expect Luke Donald’s involvement to buck the trend and raise the standard of design at IMG to any serious heights, we look forward nonetheless to reviewing Ba Na Hills when it opens. At this stage we aren’t sure whether this particular Vietnamese client should be viewed as being shrewd for waiting until an affordable IMG star was World number 1 before making their ‘design’ decision, or foolish for not waiting even longer in the chance than Donald’s form might slip and another IMG star replace him atop the rankings.
Source:Planet Golf | Photo courtesy of Sun Group.
For those with more than a passing interest in design and golf course development in Asia, to give you some background here – it was announced back in November 2010 that Ba Na Hills had selected IMG to design its golf course, the press release from IMG stating at the time that ‘the first 18 holes at Ba Na Hills are now under detailed design. Construction is scheduled to start sometime in early 2011.’
Brit Stenson, who is the Director of Design for IMG, and presumably now the ghost-designer for Luke Donald, announced at the time that ‘Ba Na Hills presents an outstanding opportunity given its great mix of topography and existing vegetation. That mix will certainly make Ba Na Hills unique among the golf clubs in the Da Nang area, and I am sure it will become one of the best courses in Vietnam.’
In May 2011, it was further announced that IMG had also been selected as construction managers for Ba Na Hills – and that construction of the course was already underway. The General Director of Sun Group (the developer) stated that, ‘having previously selected IMG as the golf course designer for our Ba Na Hills project, there was excellent synergy to also appoint them in this construction management role.” He added that completion of the golf course was expected in late 2012.
Then came last weeks announcement that Luke Donald’s first foray into design would be the Ba Na Hills project in Vietnam, which we now know is already under construction. Donald, for his part, commented that he was “really happy with how the current design is looking on paper and looks forward to getting on site later this year to further refine the detailed design features.”The fact that a client would engage IMG and wait until the course was under construction before ‘choosing’ which famous player would be held up as its ‘designer’ should come as no great surprise. Choice and range of celebrity players is, after all, the chief, and possibly only, benefit to engaging IMG Design as your course architects.
The fact that Ba Na Hills is already being built, and Luke Donald has only just become involved in the project and won’t be on site until later in the year, is going to make it more difficult when finished for IMG to hoodwink us into believing he really had anything to do with its design.
As we’ve reported previously on this site, modern golfers who chase the cash and team up with companies like IMG for signature projects had better not fall in love with design or plan to later establish standalone signature businesses, because poor work done in your name will be held against you down the track. One suspects Donald is more interested in playing professionally anyway than developing any serious design career, which is true of almost every present-day tournament celebrity.
Vietnam is a country with limited appeal to the traveling golfer, and every new project carries great expectation and hope that the wider tourism industry will benefit from its completion. So far results have been mostly underwhelming, and while we don’t expect Luke Donald’s involvement to buck the trend and raise the standard of design at IMG to any serious heights, we look forward nonetheless to reviewing Ba Na Hills when it opens. At this stage we aren’t sure whether this particular Vietnamese client should be viewed as being shrewd for waiting until an affordable IMG star was World number 1 before making their ‘design’ decision, or foolish for not waiting even longer in the chance than Donald’s form might slip and another IMG star replace him atop the rankings.
Source:Planet Golf | Photo courtesy of Sun Group.
()
VinaLand aims to make cash distribution 16 Jun 2011, 9:41 am
VNRE - VinaLand, an investment company focused on Vietnam's real estate sector, has stated that approximately 50 percent of cash generated from divestments, after providing for tax and investment commitments, will be distributed to shareholders of the Company.
The Board intended to make the first distribution following finalisation of the interim financial statements for the six months ended 31 December 2010. However, there was not sufficient cash available from divestments to warrant a distribution payment at that time.
The company is currently finalising several divestments that, upon completion of those transactions and the receipt of funds at the offshore fund level, should allow for a distribution to take place.
The Chairman of the Company, Mr. Nicholas Brooke, said: "VNL continues to make satisfactory progress in developing its assets and exiting mature holdings or those that do not fit the current strategy of the fund. Unfortunately, the current macro-economic climate in Vietnam is very challenging and receipt of payments on several divestments has been delayed, preventing us from completing a distribution in the first half of 2011. The Board continue to review the optimal method for returning capital, in consultation with shareholders, with a view to maximising value."
VNL continues to benefit from ongoing sales at residential township developments in Danang, Nha Trang and Ho Chi Minh City.
"VNL's progress with residential sales is highlighted by the recent success of the Danang Beach Resort in winning the Bloomberg-sponsored Asia Pacific Property Awards. Our residential sales brand, VinaLiving, is establishing itself as a mark of quality and value across Vietnam. We remain excited by the prospects of the fund and its ability to generate long-term returns for shareholders," Mr. Brooke said.
Source: StockMarketWire.com
The Board intended to make the first distribution following finalisation of the interim financial statements for the six months ended 31 December 2010. However, there was not sufficient cash available from divestments to warrant a distribution payment at that time.
The company is currently finalising several divestments that, upon completion of those transactions and the receipt of funds at the offshore fund level, should allow for a distribution to take place.
The Chairman of the Company, Mr. Nicholas Brooke, said: "VNL continues to make satisfactory progress in developing its assets and exiting mature holdings or those that do not fit the current strategy of the fund. Unfortunately, the current macro-economic climate in Vietnam is very challenging and receipt of payments on several divestments has been delayed, preventing us from completing a distribution in the first half of 2011. The Board continue to review the optimal method for returning capital, in consultation with shareholders, with a view to maximising value."
VNL continues to benefit from ongoing sales at residential township developments in Danang, Nha Trang and Ho Chi Minh City.
"VNL's progress with residential sales is highlighted by the recent success of the Danang Beach Resort in winning the Bloomberg-sponsored Asia Pacific Property Awards. Our residential sales brand, VinaLiving, is establishing itself as a mark of quality and value across Vietnam. We remain excited by the prospects of the fund and its ability to generate long-term returns for shareholders," Mr. Brooke said.
Source: StockMarketWire.com
InterContinental Danang Resort - Update for June 2011 16 Jun 2011, 7:04 am
VNRE - InterContinental Danang Resort will soon define the luxury resort experience in Vietnam and Southeast Asia. Embedded in the hills of the famous Son Tra Peninsula and surrounded by a beautiful landscape with panoramic views of the Southeast Asia Sea, the resort will be the choice for travelers seeking an experience that connects them to what’s special about Danang as well as offer them a once in a lifetime meetings experience.
The resort is secluded within the privacy of tropical lush green mountains and offers breathtaking views over the South China Sea. Suspended between heaven and earth, this luxury resort was designed to blend modern convenience with elements of traditional Vietnamese architecture. The resort features 168 spacious rooms, five beachfront villas with private pools and a range of more than 20 suites.
Photos courtesy of Uy Nam Construction (Unicons)
The resort is secluded within the privacy of tropical lush green mountains and offers breathtaking views over the South China Sea. Suspended between heaven and earth, this luxury resort was designed to blend modern convenience with elements of traditional Vietnamese architecture. The resort features 168 spacious rooms, five beachfront villas with private pools and a range of more than 20 suites.
Photos courtesy of Uy Nam Construction (Unicons)
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Long Thanh airport project approved 15 Jun 2011, 9:10 am
VNRE - The Prime Minister on June 14 given approval to Long Thanh International Airport Project in the southern province of Dong Nai.
The airport is expected to serve as an entrepot in the Southeast Asia region and will be large enough for receiving aircraft A380-800, 100 million passengers a year and 5 million tonnes of cargo a year.
In the first phase of the project (up to 2020), two parallel runways will be built to accommodate A380 aircraft with 68 parking spots for aircraft.
The second phase of the project (2020-2030) will see the number of runways raised to three, and the third phase beyond 2030 will increase the number to four.
The airport will have a terminal for both domestic and international flights by 2020 and two terminals by 2030.
Source: Vietnam+
The airport is expected to serve as an entrepot in the Southeast Asia region and will be large enough for receiving aircraft A380-800, 100 million passengers a year and 5 million tonnes of cargo a year.
In the first phase of the project (up to 2020), two parallel runways will be built to accommodate A380 aircraft with 68 parking spots for aircraft.
The second phase of the project (2020-2030) will see the number of runways raised to three, and the third phase beyond 2030 will increase the number to four.
The airport will have a terminal for both domestic and international flights by 2020 and two terminals by 2030.
Source: Vietnam+
Real estate sector grows ripe for mergers, acquisitions 15 Jun 2011, 9:10 am
VNRE - A resource crunch has been creating a favourable opportunity for mergers and acquisitions in the property sector, an industry insider has said.
"Viet Nam's real estate market is observing an unprecedented period of M&A activity, with both foreign and Vietnamese buyers and sellers active at this time," Neil MacGregor, deputy managing director of real estate services provider Savills Vietnam, said.
"While deals have been scarce in recent years, there is now a growing range of opportunities available to investors."
The Vietnamese real estate market was critically short of capital and developers were therefore seeking new sources of finance.
"Despite the recent clampdown on new lending to real estate, credit growth over the period from 2008 to 2010 has left many developers facing the pressure resulting from high interest rates, slow rates of residential sales and rising construction costs."
There were a number of options open to developers requiring capital to move their projects forward, none of which necessarily required financing from banks if the right partner could be found.
These included outright sale of a project, seeking a joint venture partner, en bloc sales of residential units, and strata sales of retail and office space.
Many Vietnamese developers continued to hold large land banks and were able to sell land to third parties to raise capital to finance the construction of other projects.
"Meanwhile, foreign investors remain frustrated by the lack of feasible projects available to them."
More active dialogue between local and foreign investors would ultimately lead to common ground and a realisation that both parties could benefit from partnerships, particularly in tough economic times.
A number of deals were done between local landowners and recognised foreign developers this year and this trend was expected to continue.
Singapore property group CapitaLand, for instance, announced last month two deals through an affiliate. One was with the Khang Dien Sai Gon Real Estate JSC to contribute 70 per cent to a project worth US$70 million to build almost 1,000 flats in HCM City's District 2.
The other was the acquisition of a 65 per cent stake in Quoc Cuong Sai Gon for around $6 million. QCSG owns around 9,000sq.m of land in HCM City's Binh Chanh District and plans to build around 800 flats.
Neil said another area where deals were highly anticipated was the retail sector since a growing number of international retail developers and operators sought to enter the Vietnamese market.
The number of deals in this sector would rise as local players recognised the benefits of partnering foreign players with many years of experience. A successful, branded retail development could also add significant value to larger mixed-use projects and accelerate residential sales.
"It is not just local land-owners and developers that are seeking exits from their real estate investments, but there is also a growing number of foreign-managed real estate funds seeking buyers for theirs."
These potential deals could be seen across the real-estate sector, but include hotels, resorts, office buildings, as well as development land within larger projects.
He expected to see many more mergers and acquisitions in the real estate sector in the next 12 months.
However, there may be hurdles to these activities.
Ho Dang Quang of the law firm Bar Association said regulations on real estate M&A were vague.
Do Thi Loan, deputy chairwoman and general secretary of the HCM City Real Estate Association, said project valuation was one of the biggest problems for M&A activities.
Source: VNA
"Viet Nam's real estate market is observing an unprecedented period of M&A activity, with both foreign and Vietnamese buyers and sellers active at this time," Neil MacGregor, deputy managing director of real estate services provider Savills Vietnam, said.
"While deals have been scarce in recent years, there is now a growing range of opportunities available to investors."
The Vietnamese real estate market was critically short of capital and developers were therefore seeking new sources of finance.
"Despite the recent clampdown on new lending to real estate, credit growth over the period from 2008 to 2010 has left many developers facing the pressure resulting from high interest rates, slow rates of residential sales and rising construction costs."
There were a number of options open to developers requiring capital to move their projects forward, none of which necessarily required financing from banks if the right partner could be found.
These included outright sale of a project, seeking a joint venture partner, en bloc sales of residential units, and strata sales of retail and office space.
Many Vietnamese developers continued to hold large land banks and were able to sell land to third parties to raise capital to finance the construction of other projects.
"Meanwhile, foreign investors remain frustrated by the lack of feasible projects available to them."
More active dialogue between local and foreign investors would ultimately lead to common ground and a realisation that both parties could benefit from partnerships, particularly in tough economic times.
A number of deals were done between local landowners and recognised foreign developers this year and this trend was expected to continue.
Singapore property group CapitaLand, for instance, announced last month two deals through an affiliate. One was with the Khang Dien Sai Gon Real Estate JSC to contribute 70 per cent to a project worth US$70 million to build almost 1,000 flats in HCM City's District 2.
The other was the acquisition of a 65 per cent stake in Quoc Cuong Sai Gon for around $6 million. QCSG owns around 9,000sq.m of land in HCM City's Binh Chanh District and plans to build around 800 flats.
Neil said another area where deals were highly anticipated was the retail sector since a growing number of international retail developers and operators sought to enter the Vietnamese market.
The number of deals in this sector would rise as local players recognised the benefits of partnering foreign players with many years of experience. A successful, branded retail development could also add significant value to larger mixed-use projects and accelerate residential sales.
"It is not just local land-owners and developers that are seeking exits from their real estate investments, but there is also a growing number of foreign-managed real estate funds seeking buyers for theirs."
These potential deals could be seen across the real-estate sector, but include hotels, resorts, office buildings, as well as development land within larger projects.
He expected to see many more mergers and acquisitions in the real estate sector in the next 12 months.
However, there may be hurdles to these activities.
Ho Dang Quang of the law firm Bar Association said regulations on real estate M&A were vague.
Do Thi Loan, deputy chairwoman and general secretary of the HCM City Real Estate Association, said project valuation was one of the biggest problems for M&A activities.
Source: VNA
Asian Coast Development Ltd. Annouces Strategic Agreement To Invest $95 Million By Pinnacle Entertainment, Inc. 14 Jun 2011, 5:51 am
VNRE - Asian Coast Development (Canada) Ltd. (ACDL), the owner and developer of the Ho Tram Strip beachfront complex of destination integrated resorts and residential developments in southern Vietnam, announced today that it has entered into a subscription agreement with Pinnacle Entertainment, Inc. (NYSE: PNK) under which Pinnacle will acquire a 26% equity interest in ACDL in exchange for a $95 million investment in ACDL. In addition, Pinnacle will enter into a management agreement through 2058 for the second integrated resort of the multi-phase Ho Tram Strip destination resorts project. The Ho Tram Strip is located approximately 80 miles southeast of Ho Chi Minh City, Vietnam’s largest city that attracts the majority of Vietnam’s 5 million tourists each year. The agreements include a potential 20-year extension of Pinnacle’s management contract and proportional representation on ACDL’s board of directors and are subject to customary closing conditions.
The Ho Tram Strip will be Vietnam’s first destination integrated resort and gaming complex and is scheduled to open in multiple phases, beginning in 2013. The multi-property resort complex is being developed by ACDL under an investment certificate from the Government of Vietnam, the first of its kind. The first resort of the Ho Tram Strip, MGM Grand Ho Tram, is currently under construction and will be managed by MGM Hospitality, a subsidiary of MGM Resorts International. The first phase of the MGM Grand Ho Tram will feature 541 luxury guest rooms and suites, a full spectrum of world-class restaurants and amenities, exquisite VIP accommodations, a conference center, and a spectacular entertainment area featuring 90 live table games and 500 electronic games.
“This transaction is another major milestone for ACDL and accelerates the development of our second resort and the entire Ho Tram site. Importantly, it builds critical mass at Ho Tram, brings a second highly respected operator into close partnership with ACDL, and enhances our plans for further growth and expansion,” said Lloyd Nathan, Chief Executive Officer of Asian Coast Development Ltd. “We now have two of the world’s leading gaming companies managing our integrated resorts in Vietnam, confirming Ho Tram as the next large-scale destination opportunity after Macau and Singapore. As a result of this transaction, we also now have the backing of two substantial institutional and corporate sponsors, Harbinger Capital Partners and Pinnacle Entertainment.”
The second integrated resort of the Ho Tram Strip, to be jointly developed by ACDL and Pinnacle and managed by Pinnacle, will be owned by ACDL. It is expected that the second integrated resort will be similar in scope to the MGM Grand Ho Tram resort that is currently under construction. It will be jointly branded by ACDL and Pinnacle as a distinct and premium resort.
“Participation in the development of the Ho Tram Strip was a highly sought after opportunity in the gaming industry. We are delighted to be a part of Vietnam’s strategic vision for the further development of its tourist industry, an investor in ACDL and a partner on the Ho Tram Strip project,” said Anthony Sanfilippo, President and Chief Executive Officer of Pinnacle Entertainment.
“We look forward to working collaboratively with ACDL, Lloyd Nathan and the rest of their management team to develop the Ho Tram Strip.”
“We are excited about the growing list of world class operators and development partners that have joined the Ho Tram project. Pinnacle Entertainment brings tremendous operating expertise and vision to ACDL, and we are pleased to welcome them,” said Philip A. Falcone, Chief Executive Officer of Harbinger Capital Partners, a leading private investment fund and ACDL’s majority investor. “We look forward as Lloyd Nathan and the ACDL team continue to build on this transaction and realize the immense potential of the Ho Tram Strip opportunity.”
Mr. Nathan added, “Pinnacle joins a strong Ho Tram Strip development team, including MGM Hospitality. We look forward to working with Anthony Sanfilippo and everyone at Pinnacle on the creation of the premier gaming and leisure destination in Southeast Asia.”
“We are delighted to see critical mass being created at Ho Tram and look forward to welcoming our new neighbors. This transaction is an important endorsement for Vietnam’s growing profile as a world-class tourism destination and we look forward to opening the MGM Grand Ho Tram in 2013,” said Gamal Aziz, President and CEO of MGM Hospitality.
About Asian Coast Development (Canada) Limited
Asian Coast Development (Canada) Ltd. (ACDL) is an international development company specializing in integrated resort destinations. ACDL, through its wholly-owned subsidiary Ho Tram Project Company Ltd, is the developer of the Ho Tram Strip, a group of integrated resorts to be located on more than 400 acres of land and more than two kilometers of pristine beach in Ho Tram, and approved in an Investment Certificate issued by the Government of Vietnam. With a focus on providing a personalized blend of excitement and relaxation, the Ho Tram Strip will feature something for everyone, from lavish entertainment to premium shopping and exceptional recreational facilities.
In November 2008, ACDL entered into an Agreement with MGM Resorts International to provide pre-opening services and to manage and operate the first of ACDL's five resorts under the MGM Grand brand. This will be Vietnam's first large scale integrated resort and ultimately will include an 1,100-room, five-star MGM Grand hotel, a world-class entertainment facility, restaurants, high-tech meeting space, an exclusive VIP area, a championship golf course, as well as a variety of beach-front recreation activities. Phase I of this development is scheduled to open in 2013 and will be the initial component of the largest integrated resort complex in Vietnam. For more information about ACDL, please visit the company's website at
http://www.asiancoastdevelopment.com/.
About Pinnacle Entertainment
Pinnacle Entertainment, Inc. owns and operates seven casinos, located in Louisiana, Missouri, Indiana and Nevada, and a racetrack in Ohio. Pinnacle is also developing L'Auberge Casino & Hotel Baton Rouge, which is scheduled to open in the summer of 2012. In May 2011, Pinnacle entered into an agreement to acquire a 26% ownership stake in Asian Coast Development Ltd. (ACDL), an international development and real estate company currently developing Vietnam's first large-scale integrated resort. For more information about Pinnacle Entertainment, please visit http://www.pnkinc.com.
About Harbinger Capital Partners
Harbinger Capital Partners is a multi-billion dollar private investment fund based in New York which employs a fundamental approach to investing. Harbinger Capital Partners is led by Philip A. Falcone who has been the Chief Executive Officer and Chief Investment Officer of funds affiliated with or managed by Harbinger Capital Partners since 2001. Mr. Falcone has more than 20 years of investment experience across an array of market cycles. For more information on Harbinger Capital Partners, please visit http://www.harbingercapital.com.
Source: ACDL & Pinnacle Entertainment.
The Ho Tram Strip will be Vietnam’s first destination integrated resort and gaming complex and is scheduled to open in multiple phases, beginning in 2013. The multi-property resort complex is being developed by ACDL under an investment certificate from the Government of Vietnam, the first of its kind. The first resort of the Ho Tram Strip, MGM Grand Ho Tram, is currently under construction and will be managed by MGM Hospitality, a subsidiary of MGM Resorts International. The first phase of the MGM Grand Ho Tram will feature 541 luxury guest rooms and suites, a full spectrum of world-class restaurants and amenities, exquisite VIP accommodations, a conference center, and a spectacular entertainment area featuring 90 live table games and 500 electronic games.
“This transaction is another major milestone for ACDL and accelerates the development of our second resort and the entire Ho Tram site. Importantly, it builds critical mass at Ho Tram, brings a second highly respected operator into close partnership with ACDL, and enhances our plans for further growth and expansion,” said Lloyd Nathan, Chief Executive Officer of Asian Coast Development Ltd. “We now have two of the world’s leading gaming companies managing our integrated resorts in Vietnam, confirming Ho Tram as the next large-scale destination opportunity after Macau and Singapore. As a result of this transaction, we also now have the backing of two substantial institutional and corporate sponsors, Harbinger Capital Partners and Pinnacle Entertainment.”
The second integrated resort of the Ho Tram Strip, to be jointly developed by ACDL and Pinnacle and managed by Pinnacle, will be owned by ACDL. It is expected that the second integrated resort will be similar in scope to the MGM Grand Ho Tram resort that is currently under construction. It will be jointly branded by ACDL and Pinnacle as a distinct and premium resort.
“Participation in the development of the Ho Tram Strip was a highly sought after opportunity in the gaming industry. We are delighted to be a part of Vietnam’s strategic vision for the further development of its tourist industry, an investor in ACDL and a partner on the Ho Tram Strip project,” said Anthony Sanfilippo, President and Chief Executive Officer of Pinnacle Entertainment.
“We look forward to working collaboratively with ACDL, Lloyd Nathan and the rest of their management team to develop the Ho Tram Strip.”
“We are excited about the growing list of world class operators and development partners that have joined the Ho Tram project. Pinnacle Entertainment brings tremendous operating expertise and vision to ACDL, and we are pleased to welcome them,” said Philip A. Falcone, Chief Executive Officer of Harbinger Capital Partners, a leading private investment fund and ACDL’s majority investor. “We look forward as Lloyd Nathan and the ACDL team continue to build on this transaction and realize the immense potential of the Ho Tram Strip opportunity.”
Mr. Nathan added, “Pinnacle joins a strong Ho Tram Strip development team, including MGM Hospitality. We look forward to working with Anthony Sanfilippo and everyone at Pinnacle on the creation of the premier gaming and leisure destination in Southeast Asia.”
“We are delighted to see critical mass being created at Ho Tram and look forward to welcoming our new neighbors. This transaction is an important endorsement for Vietnam’s growing profile as a world-class tourism destination and we look forward to opening the MGM Grand Ho Tram in 2013,” said Gamal Aziz, President and CEO of MGM Hospitality.
About Asian Coast Development (Canada) Limited
Asian Coast Development (Canada) Ltd. (ACDL) is an international development company specializing in integrated resort destinations. ACDL, through its wholly-owned subsidiary Ho Tram Project Company Ltd, is the developer of the Ho Tram Strip, a group of integrated resorts to be located on more than 400 acres of land and more than two kilometers of pristine beach in Ho Tram, and approved in an Investment Certificate issued by the Government of Vietnam. With a focus on providing a personalized blend of excitement and relaxation, the Ho Tram Strip will feature something for everyone, from lavish entertainment to premium shopping and exceptional recreational facilities.
In November 2008, ACDL entered into an Agreement with MGM Resorts International to provide pre-opening services and to manage and operate the first of ACDL's five resorts under the MGM Grand brand. This will be Vietnam's first large scale integrated resort and ultimately will include an 1,100-room, five-star MGM Grand hotel, a world-class entertainment facility, restaurants, high-tech meeting space, an exclusive VIP area, a championship golf course, as well as a variety of beach-front recreation activities. Phase I of this development is scheduled to open in 2013 and will be the initial component of the largest integrated resort complex in Vietnam. For more information about ACDL, please visit the company's website at
http://www.asiancoastdevelopment.com/.
About Pinnacle Entertainment
Pinnacle Entertainment, Inc. owns and operates seven casinos, located in Louisiana, Missouri, Indiana and Nevada, and a racetrack in Ohio. Pinnacle is also developing L'Auberge Casino & Hotel Baton Rouge, which is scheduled to open in the summer of 2012. In May 2011, Pinnacle entered into an agreement to acquire a 26% ownership stake in Asian Coast Development Ltd. (ACDL), an international development and real estate company currently developing Vietnam's first large-scale integrated resort. For more information about Pinnacle Entertainment, please visit http://www.pnkinc.com.
About Harbinger Capital Partners
Harbinger Capital Partners is a multi-billion dollar private investment fund based in New York which employs a fundamental approach to investing. Harbinger Capital Partners is led by Philip A. Falcone who has been the Chief Executive Officer and Chief Investment Officer of funds affiliated with or managed by Harbinger Capital Partners since 2001. Mr. Falcone has more than 20 years of investment experience across an array of market cycles. For more information on Harbinger Capital Partners, please visit http://www.harbingercapital.com.
Source: ACDL & Pinnacle Entertainment.
()
High-end property segment undeterred by tough conditions 14 Jun 2011, 5:50 am
VNRE - As compared with the so-called affordable housing units whose selling prices are bellow VND20 million per square meter, the high-end segment with apartments and villas worth several billion per unit is facing tough sales. Interest rate support, flexible payment terms, lucky draws and discounts are among the multiple incentives developers are offering for winning buyers.
But the tough market conditions have not deterred a number of developers from launching their projects.
Among those developers is Khang Dien Housing Trading and Investment Joint Stock Company which on Saturday started marketing its luxury Goldora Villa project underway on Lien Phuong Street in Phu Huu Ward in HCMC’s District 9. The project covers some eight hectares with 119 villas of 192 to some 1,070 square meters, with prices starting from VND6.5 billion per unit.
Ly Dien Son, general director of Khang Dien, said the company had decided to launch the project to assert its business development strategy in spite of the current challenges and that the company had received feedback from the market since it launched Villa Park project nearby the newly launched project.
Villa Park is jointly developed by Khang Dien Co and Prudential Vietnam Fund Management Co, a Prudential subsidiary. It has 213 villas and garden row houses and serviced utilities such as swimming pools, Jacuzzis, barbecue gardens, sport clubs, tree parks and a kindergarten. VND1.5 trillion has been allocated for the first phase of the residential project.
Dien said some 60 villas in the first phase of the Villa Park project were sold with prices ranging from VND3 billion to VND9 billion a unit, thus encouraging the developer to move on with its second villa project in the area.
In another development in the same area, VinaCapital Real Estate Company is pressing ahead with a plan to launch a residential project later this year after it saw success in the first project nearby.
David Henry, managing director of the company, said the company would invest some US$40 million in Garland 2 project with 72 villas and four condominium towers.
The firm is expected to get positive feedback from the market as seen in Garland 1 project whose 53 villas have been snapped up.
The high-end segment on Saturday saw the Singaporean property company Keppel Land Limited and its local partner Tan Truong Company launched their mixed-use development in HCMC’s District 7.
Some 193 apartments in its Riviera Point project along the Ca Cam River in District 7 are offered from VND30.7 million (US$1,460) per square meter.
The US$200 million project has 18 residential towers with a total of 2,400 apartments of two to four bedrooms. Like other developments, it has spaces for retail shops, food and beverage outlets, and recreational facilities. As planned, the first phase of the project with 549 apartments will be completed by 2014.
Linson Lim, president of Keppel Land International for Vietnam, Thailand and the Philippines, agreed the current residential market was tough for all developers. However, the Singaporean company has a long-term development strategy in the Vietnamese market where it expects to see challenges overcome in the coming time.
Flexible payment methods
While a number of developers look optimistic, many others are struggling to do all what they can to lure buyers through various incentives.
For example, Novaland Company has started up a free-staying program to get buyers’ feedback for its 39 apartments in the Sunrise City project in HCMC’s District 7.
In the program, the buyer will place a deposit equivalent to some 20% of the total value of an apartment when they sign a contract. The buyer then will make an additional payment equivalent to 60% to take delivery of the apartments. They are eligible to stay in the apartment for two years without paying a fee. After two years, they will pay the remaining 20% once they want to buy. If they do not want to buy, they can return their apartments to the company and take back their deposits together with the interest.
In another development, Phat Dat Corporation allows buyers to pay in 48 installments in the EverRich 2 condo project in District 7.
Instead of fixing a payment schedule, the firm is willing to design a payment method that fits the buyer’s monthly income. The first required deposit is 10% of the total value of an apartment and from the second to 47th payment, the buyer will pay a mere 1.3% at a time.
The company calculates that for a VND2.5 billion apartment, the buyer can pay some VND40 million per month. The amount of payment is believed to suit the income of a young family.
However, time will tell which incentives work, and which developers will win the race to attract customers. The current credit crunch and high interest rates have impacted on both the developer and the buyer.
Source: The Saigon Times
But the tough market conditions have not deterred a number of developers from launching their projects.Among those developers is Khang Dien Housing Trading and Investment Joint Stock Company which on Saturday started marketing its luxury Goldora Villa project underway on Lien Phuong Street in Phu Huu Ward in HCMC’s District 9. The project covers some eight hectares with 119 villas of 192 to some 1,070 square meters, with prices starting from VND6.5 billion per unit.
Ly Dien Son, general director of Khang Dien, said the company had decided to launch the project to assert its business development strategy in spite of the current challenges and that the company had received feedback from the market since it launched Villa Park project nearby the newly launched project.
Villa Park is jointly developed by Khang Dien Co and Prudential Vietnam Fund Management Co, a Prudential subsidiary. It has 213 villas and garden row houses and serviced utilities such as swimming pools, Jacuzzis, barbecue gardens, sport clubs, tree parks and a kindergarten. VND1.5 trillion has been allocated for the first phase of the residential project.
Dien said some 60 villas in the first phase of the Villa Park project were sold with prices ranging from VND3 billion to VND9 billion a unit, thus encouraging the developer to move on with its second villa project in the area.
In another development in the same area, VinaCapital Real Estate Company is pressing ahead with a plan to launch a residential project later this year after it saw success in the first project nearby.
David Henry, managing director of the company, said the company would invest some US$40 million in Garland 2 project with 72 villas and four condominium towers.
The firm is expected to get positive feedback from the market as seen in Garland 1 project whose 53 villas have been snapped up.
The high-end segment on Saturday saw the Singaporean property company Keppel Land Limited and its local partner Tan Truong Company launched their mixed-use development in HCMC’s District 7.
Some 193 apartments in its Riviera Point project along the Ca Cam River in District 7 are offered from VND30.7 million (US$1,460) per square meter.
The US$200 million project has 18 residential towers with a total of 2,400 apartments of two to four bedrooms. Like other developments, it has spaces for retail shops, food and beverage outlets, and recreational facilities. As planned, the first phase of the project with 549 apartments will be completed by 2014.
Linson Lim, president of Keppel Land International for Vietnam, Thailand and the Philippines, agreed the current residential market was tough for all developers. However, the Singaporean company has a long-term development strategy in the Vietnamese market where it expects to see challenges overcome in the coming time.
Flexible payment methods
While a number of developers look optimistic, many others are struggling to do all what they can to lure buyers through various incentives.
For example, Novaland Company has started up a free-staying program to get buyers’ feedback for its 39 apartments in the Sunrise City project in HCMC’s District 7.
In the program, the buyer will place a deposit equivalent to some 20% of the total value of an apartment when they sign a contract. The buyer then will make an additional payment equivalent to 60% to take delivery of the apartments. They are eligible to stay in the apartment for two years without paying a fee. After two years, they will pay the remaining 20% once they want to buy. If they do not want to buy, they can return their apartments to the company and take back their deposits together with the interest.
In another development, Phat Dat Corporation allows buyers to pay in 48 installments in the EverRich 2 condo project in District 7.
Instead of fixing a payment schedule, the firm is willing to design a payment method that fits the buyer’s monthly income. The first required deposit is 10% of the total value of an apartment and from the second to 47th payment, the buyer will pay a mere 1.3% at a time.
The company calculates that for a VND2.5 billion apartment, the buyer can pay some VND40 million per month. The amount of payment is believed to suit the income of a young family.
However, time will tell which incentives work, and which developers will win the race to attract customers. The current credit crunch and high interest rates have impacted on both the developer and the buyer.
Source: The Saigon Times
()
Landed property remains favorite 14 Jun 2011, 4:17 am
VNRE - Regardless of market difficulties, landed property remains the preferred choice for investors, and the demand for the segment is projected to continue its upward climb in the next few years
What's happening in the market shows that the condo segment, especially the luxury apartments, is surrounded with many difficulties. Abundant supply forces most developers to offer incentives to potential buyers, designing different promotion programs to boost their sales. Interest rate support, flexible payments, discounts in cash, a lucky draw for a car or motorbike, and giving savings books and even gold are what developers offer in hopes to quickly clear their stocks.
Unfortunately, high interest rates and the current credit tightening policy are discouraging many people from buying apartments for accommodation. Because of low liquidity, the condo market has seen fewer secondary investors than in the past. Unlike developers who now feel as if they are on the hot seat, buyers are adopting a wait-and-see attitude, hoping housing prices and interest rates will come down further. All these ingredients have negatively affected developers' business performance so far.
However, the landed property segment, including villas and townhouses for sale, has continued to see stable development, with the primary market still achieving strong numbers during the first quarter of this year. The preferred choice of landed housing among Vietnamese people is supporting the segment.
Tracking the local market beat, property services provider Savills Vietnam reported that demand for landed property in HCM City remained strong as the market saw the absorption rate of the primary market recorded at 23%, a six-percentage-point improvement compared with the fourth quarter of last year.
The main stock of both the primary and secondary markets is concentrated in the east and south of HCM City, including districts 2, 7, 9 and Nha Be. There are some 60,000 land lots from 164 projects located in seven districts including 2, 7, 8, 9, Nha Be, Binh Chanh and Thu Duc in HCM City. These districts, with their improving infrastructure systems connecting them directly to the central business districts, have larger quantities of land lots and more transactions than others.
Nguyen Nguyen Thai, head of residential project marketing of CB Richard Ellis Vietnam (CBRE), said that the residential market has seen a trend in property investment between the apartment segment and the villa and townhouse segments. With the same investment capital, from US$170,000, buyers have considered buying landed properties in outlying districts rather than buying luxury apartments in the city center.
Thai said the market used to see a half-and-half proportion between the number of customers buying apartments in districts 2 and 7 and villas in District 9 and Nha Be District. However, the proportion now is recorded at 30% and 70%.
Unlike the so-called affordable apartments, for which pricing is the most interesting element for buyers, the villa and townhouse segment targets well-to-do buyers who just pay attention to living environment and can pay by their savings.
Instead of keeping their savings in cash, some people are looking at property as an investment vehicle to protect their assets against further currency devaluation. That explains why land lots in fringe districts and neighboring localities such as Binh Duong, Long An and Dong Nai, where land prices are still affordable, remain attractive to many people.
The liquidity of the land lot segment in the residential market is among the many reasons encouraging some developers to shift their investments to landed properties.
For example, the central coast city of Danang has witnessed Trung Nam Corporation, after withdrawing from a 48-story development in the city, get off the ground its Golden Hills urban town project, which covers some 400 hectares in Hoa Hiep Bac in Lien Chieu District. Phuong Trang Corporation has launched Phuong Trang New Town Danang Bay, which covers 147 hectares along Nguyen Tat Thanh Street. As well, some other companies have joined the land lot market in the city where there are some 3,200 land lots and an additional of 5,200 ones to be launched into the market toward the end of the year.
In the capital city of Hanoi, Sai Dong Urban Development and Investment Joint Stock Company, an affiliate of Vincom Corporation, has launched its Vincom Village multipurpose project in Long Bien District. Some VND10 trillion will be set aside to develop the project on 183.5 hectares with different sections, including a section for villas.
Relating to the beat of the Hanoi market, Savills Vietnam reported prices of villas and townhouses in the capital city continued to increase in the first quarter of this year, 20% for villas and 15% for townhouses. Average secondary asking prices recorded around US$6,400 per square meter and from US$800 to US$1,200 per square meter for districts far from the central business quarter. The demand for the properties is identified among mainly wealthy Vietnamese.
Property service providers said that with a higher absorption rate, the villa and townhouse performance in the HCM City market would remain relatively stable in the short term. The market will see 118 projects provide some 54,000 housing units in the next five years, with the number of townhouses expected to double that of villas. The future supply comes mainly from suburban districts.
Savills Vietnam projected that new housing construction licences granted would encourage the demand for landed property to continue its upward trend in the next few years.
Source: SGT
What's happening in the market shows that the condo segment, especially the luxury apartments, is surrounded with many difficulties. Abundant supply forces most developers to offer incentives to potential buyers, designing different promotion programs to boost their sales. Interest rate support, flexible payments, discounts in cash, a lucky draw for a car or motorbike, and giving savings books and even gold are what developers offer in hopes to quickly clear their stocks.Unfortunately, high interest rates and the current credit tightening policy are discouraging many people from buying apartments for accommodation. Because of low liquidity, the condo market has seen fewer secondary investors than in the past. Unlike developers who now feel as if they are on the hot seat, buyers are adopting a wait-and-see attitude, hoping housing prices and interest rates will come down further. All these ingredients have negatively affected developers' business performance so far.
However, the landed property segment, including villas and townhouses for sale, has continued to see stable development, with the primary market still achieving strong numbers during the first quarter of this year. The preferred choice of landed housing among Vietnamese people is supporting the segment.
Tracking the local market beat, property services provider Savills Vietnam reported that demand for landed property in HCM City remained strong as the market saw the absorption rate of the primary market recorded at 23%, a six-percentage-point improvement compared with the fourth quarter of last year.
The main stock of both the primary and secondary markets is concentrated in the east and south of HCM City, including districts 2, 7, 9 and Nha Be. There are some 60,000 land lots from 164 projects located in seven districts including 2, 7, 8, 9, Nha Be, Binh Chanh and Thu Duc in HCM City. These districts, with their improving infrastructure systems connecting them directly to the central business districts, have larger quantities of land lots and more transactions than others.
Nguyen Nguyen Thai, head of residential project marketing of CB Richard Ellis Vietnam (CBRE), said that the residential market has seen a trend in property investment between the apartment segment and the villa and townhouse segments. With the same investment capital, from US$170,000, buyers have considered buying landed properties in outlying districts rather than buying luxury apartments in the city center.
Thai said the market used to see a half-and-half proportion between the number of customers buying apartments in districts 2 and 7 and villas in District 9 and Nha Be District. However, the proportion now is recorded at 30% and 70%.
Unlike the so-called affordable apartments, for which pricing is the most interesting element for buyers, the villa and townhouse segment targets well-to-do buyers who just pay attention to living environment and can pay by their savings.
Instead of keeping their savings in cash, some people are looking at property as an investment vehicle to protect their assets against further currency devaluation. That explains why land lots in fringe districts and neighboring localities such as Binh Duong, Long An and Dong Nai, where land prices are still affordable, remain attractive to many people.
The liquidity of the land lot segment in the residential market is among the many reasons encouraging some developers to shift their investments to landed properties.
For example, the central coast city of Danang has witnessed Trung Nam Corporation, after withdrawing from a 48-story development in the city, get off the ground its Golden Hills urban town project, which covers some 400 hectares in Hoa Hiep Bac in Lien Chieu District. Phuong Trang Corporation has launched Phuong Trang New Town Danang Bay, which covers 147 hectares along Nguyen Tat Thanh Street. As well, some other companies have joined the land lot market in the city where there are some 3,200 land lots and an additional of 5,200 ones to be launched into the market toward the end of the year.
In the capital city of Hanoi, Sai Dong Urban Development and Investment Joint Stock Company, an affiliate of Vincom Corporation, has launched its Vincom Village multipurpose project in Long Bien District. Some VND10 trillion will be set aside to develop the project on 183.5 hectares with different sections, including a section for villas.
Relating to the beat of the Hanoi market, Savills Vietnam reported prices of villas and townhouses in the capital city continued to increase in the first quarter of this year, 20% for villas and 15% for townhouses. Average secondary asking prices recorded around US$6,400 per square meter and from US$800 to US$1,200 per square meter for districts far from the central business quarter. The demand for the properties is identified among mainly wealthy Vietnamese.
Property service providers said that with a higher absorption rate, the villa and townhouse performance in the HCM City market would remain relatively stable in the short term. The market will see 118 projects provide some 54,000 housing units in the next five years, with the number of townhouses expected to double that of villas. The future supply comes mainly from suburban districts.
Savills Vietnam projected that new housing construction licences granted would encourage the demand for landed property to continue its upward trend in the next few years.
Source: SGT
()
Vincom markets mammoth property project in Hanoi 11 Jun 2011, 5:18 am
VNRE - Sai Dong Urban Development and Investment JSC, an affiliate of Vincom Corporation, on Tuesday started marketing its Vincom Village multipurpose project underway in Long Bien District in the capital city of Hanoi.
The project is envisioned including a 38-hectare section for French-style villas, a section for Grade A office buildings and high-end apartments, and a commercial services section named Vincom Center Long Bien.
Besides a sport center and an outdoor food court, an international hospital, two schools and a kindergarten will be built to serve the project’s future communities.
Mai Huong Noi, general director of Vincom Corporation, says the company wants to set a record in the project development speed. The project got off the ground on May 12 this year.
As planned, villas will be handed over to buyers from September and the shopping center, Vincom Center Long Bien, will be opened by December 24 this year. The second phase with the remaining facilities will be finished by 2013.
In related residential market news in the region, the property services provider Savills Vietnam said that prices of villas and townhouses in the capital city continued to increase in the first quarter of this year, 20% for villas and 15% for townhouses.
Average secondary asking prices recorded in Tu Liem, Cau Giay and Tay Ho districts were around US$6,400 per square meter. For districts far from the central business quarter such as Me Linh and Quoc Oai had the lowest price from US$800 to US$1,200 per square meter.
According Savills, 103 projects across 14 districts provide the market some 34,600 villas and townhouses. The demand for the properties is identified among mainly wealthy Vietnamese.
In the office building sector, the overall market recorded a slight increase in occupancy performance to 90% in the first quarter of this year. Average rent remained unchanged compared with the previous quarter, at US$26 per square meter.
The office market in Hanoi currently has 760,000 square meters, but there will have some 1.2 million square meters of office space to enter the market in the next three years.
Meanwhile the retail market saw a slight decrease in the average occupancy rate to 92% in the first quarter. Some retail buildings launched promotions and discounts in order to attract more tenants.
The market observer says the total retail space of 440,000 square meters in the market will be increased significantly as 100 projects will supply some 1.2 million square meters in the next four years.
Reported by Dinh Dung | The Saigon Times
The project is envisioned including a 38-hectare section for French-style villas, a section for Grade A office buildings and high-end apartments, and a commercial services section named Vincom Center Long Bien.
Besides a sport center and an outdoor food court, an international hospital, two schools and a kindergarten will be built to serve the project’s future communities.
Mai Huong Noi, general director of Vincom Corporation, says the company wants to set a record in the project development speed. The project got off the ground on May 12 this year.
As planned, villas will be handed over to buyers from September and the shopping center, Vincom Center Long Bien, will be opened by December 24 this year. The second phase with the remaining facilities will be finished by 2013.
In related residential market news in the region, the property services provider Savills Vietnam said that prices of villas and townhouses in the capital city continued to increase in the first quarter of this year, 20% for villas and 15% for townhouses.
Average secondary asking prices recorded in Tu Liem, Cau Giay and Tay Ho districts were around US$6,400 per square meter. For districts far from the central business quarter such as Me Linh and Quoc Oai had the lowest price from US$800 to US$1,200 per square meter.
According Savills, 103 projects across 14 districts provide the market some 34,600 villas and townhouses. The demand for the properties is identified among mainly wealthy Vietnamese.
In the office building sector, the overall market recorded a slight increase in occupancy performance to 90% in the first quarter of this year. Average rent remained unchanged compared with the previous quarter, at US$26 per square meter.
The office market in Hanoi currently has 760,000 square meters, but there will have some 1.2 million square meters of office space to enter the market in the next three years.
Meanwhile the retail market saw a slight decrease in the average occupancy rate to 92% in the first quarter. Some retail buildings launched promotions and discounts in order to attract more tenants.
The market observer says the total retail space of 440,000 square meters in the market will be increased significantly as 100 projects will supply some 1.2 million square meters in the next four years.
Reported by Dinh Dung | The Saigon Times
()
Jardine still wants prime site for commercial property 11 Jun 2011, 5:15 am
VNRE - Jardine Matheson, a UK diversified business group that focuses on Asia, is still interested in a prime location in downtown HCMC where it plans to develop a multi-purpose complex.
At his meeting with HCMC vice chairman Nguyen Trung Tin on Monday, Anthony Matheson, CEO and Managing Director of Jardine Matheson Group, repeated a request for prime-site land he made at a meeting with city chairman Le Hoang Quan eight months ago.
“Through the member company of Dairy Farm International Holdings Limited (DFI) that specializes in operating supermarkets, hypermarkets, health and beauty stores, convenience stores, home furnishings stores and restaurants, we’ve developed a major supermarket and retailer chain in Malaysia, Singapore, Brunei, Indonesia and UAE,” he said.
“In Vietnam, we’ve cooperated with Phu My Hung Corporation to develop the Crescent Mall in District 7,” said Matheson.
Speaking to Matheson, Tin noted the city already had many store chains including Metro, Big C, Lotte and Co.opMart. “Jardine should look at other areas than the central business district, especially the Thu Thiem New Urban Area (District 2) and the city’s northern gateway in Cu Chi District.”
As for the planned multi-purpose complex project, Matheson said his company wanted to develop it at 164 Dong Khoi Street in District 1. The project will include a shopping center, 5-star hotel, apartments and offices for rent.
However, Tin said, the central Government, not the city, could only decide this. The Government may invite tenders for this location or appoint a competent investor to develop it, he said.
The 9,700-square-meter site in front of the Notre Dame Cathedral and Metropolitan building is divided in two parts, comprising a French-style building that is used as the head office of the Department of Culture, Sports and Tourism and a 2,600-square-meter area that is home to 154 households.
About 66 local and foreign investors also want to bid for the location.
Reported by Kinh Luan | The Saigon Times
At his meeting with HCMC vice chairman Nguyen Trung Tin on Monday, Anthony Matheson, CEO and Managing Director of Jardine Matheson Group, repeated a request for prime-site land he made at a meeting with city chairman Le Hoang Quan eight months ago.“Through the member company of Dairy Farm International Holdings Limited (DFI) that specializes in operating supermarkets, hypermarkets, health and beauty stores, convenience stores, home furnishings stores and restaurants, we’ve developed a major supermarket and retailer chain in Malaysia, Singapore, Brunei, Indonesia and UAE,” he said.
“In Vietnam, we’ve cooperated with Phu My Hung Corporation to develop the Crescent Mall in District 7,” said Matheson.
Speaking to Matheson, Tin noted the city already had many store chains including Metro, Big C, Lotte and Co.opMart. “Jardine should look at other areas than the central business district, especially the Thu Thiem New Urban Area (District 2) and the city’s northern gateway in Cu Chi District.”
As for the planned multi-purpose complex project, Matheson said his company wanted to develop it at 164 Dong Khoi Street in District 1. The project will include a shopping center, 5-star hotel, apartments and offices for rent.
However, Tin said, the central Government, not the city, could only decide this. The Government may invite tenders for this location or appoint a competent investor to develop it, he said.
The 9,700-square-meter site in front of the Notre Dame Cathedral and Metropolitan building is divided in two parts, comprising a French-style building that is used as the head office of the Department of Culture, Sports and Tourism and a 2,600-square-meter area that is home to 154 households.
About 66 local and foreign investors also want to bid for the location.
Reported by Kinh Luan | The Saigon Times
()
Vinpearl to open Vinpearl Luxury Danang Resort in July 11 Jun 2011, 5:07 am
VNRE - Built on one of the most beautiful beach of the planet, where reconciliation between the imposing mountain and endless blue sea, the 5+ star hotel named Vinpearl Luxury Da Nang is ideal paradise resort for customers. After more than a year of construction and finishing, on 07/03/2011, Vinpearl Corporation will officially open and welcome guests to this beautiful resort.
Occasion of the opening, Vinpearl Luxury Da Nang offers "Special opening offer" promotion to all customers booking request to 07/31/2011 for the period from 07/04/2011 to 11/30/2011. Customers will get special treatments: free transport charges from airport to hotel, free fruit basket in room on check-in day, free breakfast everyday for 02 people, 20% reduction on the bill for spa services and dining, free shuttle bus to Hoi An or Bana Hills.
Located in the most favorable position of Non Nuoc beach, one of six most beautiful beaches on the planet (according to Forbes magazine's poll), with view towards the sea and its back leans against the Marble Mountains range, Vinpearl Luxury Danang becomes extremely ideal destination for the perfect holiday. From here, you can easily visit the world cultural heritage sites has been recognized by UNESCO as My Son, Hoi An and Hue Citadel.
From Da Nang International Airport, customers only take about 15 minutes by car to Vinpearl Luxury Danang Resort.
The hotel consists of 200 luxury rooms class 5 + stars were designed in contemporary architectural style. Interior decoration in hotel rooms are well-designed, luxurious and makes you feel like being in the middle of a paradise resort. In particular, all rooms in this resort are overlooking the sea and main pool. In addition, all customer care services of Vinpearl Luxury Danang: transport from the airport, health care and beauty, entertainment, cuisine... are served in accordance with the criterias: luxury and privacy, unique and highclass, comfort and warm.
Vinpearl Luxury Danang - Paradise resort in the dream.
For detailed information, please contact:
Reservation department of Vinpearl Luxury Danang
Hanoi: Tel: 84.4.3974 9966 - Fax: 84.4.3974 8833
Danang: 84.511.396 8888 - Fax: 84.511.396 8188
Email: reservation@vinpearlluxury-danang.com
Occasion of the opening, Vinpearl Luxury Da Nang offers "Special opening offer" promotion to all customers booking request to 07/31/2011 for the period from 07/04/2011 to 11/30/2011. Customers will get special treatments: free transport charges from airport to hotel, free fruit basket in room on check-in day, free breakfast everyday for 02 people, 20% reduction on the bill for spa services and dining, free shuttle bus to Hoi An or Bana Hills.
Located in the most favorable position of Non Nuoc beach, one of six most beautiful beaches on the planet (according to Forbes magazine's poll), with view towards the sea and its back leans against the Marble Mountains range, Vinpearl Luxury Danang becomes extremely ideal destination for the perfect holiday. From here, you can easily visit the world cultural heritage sites has been recognized by UNESCO as My Son, Hoi An and Hue Citadel.
From Da Nang International Airport, customers only take about 15 minutes by car to Vinpearl Luxury Danang Resort.
The hotel consists of 200 luxury rooms class 5 + stars were designed in contemporary architectural style. Interior decoration in hotel rooms are well-designed, luxurious and makes you feel like being in the middle of a paradise resort. In particular, all rooms in this resort are overlooking the sea and main pool. In addition, all customer care services of Vinpearl Luxury Danang: transport from the airport, health care and beauty, entertainment, cuisine... are served in accordance with the criterias: luxury and privacy, unique and highclass, comfort and warm.
Vinpearl Luxury Danang - Paradise resort in the dream.
For detailed information, please contact:
Reservation department of Vinpearl Luxury Danang
Hanoi: Tel: 84.4.3974 9966 - Fax: 84.4.3974 8833
Danang: 84.511.396 8888 - Fax: 84.511.396 8188
Email: reservation@vinpearlluxury-danang.com
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Vung Tau: DC6 – Thang Long mixed-use development 8 Jun 2011, 4:15 am
VNRE - ICE (Ideas for Contemporary Environments) with local architect Trinity & Associates was awarded the 2nd Prize for its entry for DC6 – Thang Long, a mixed-use Development, as a popular beach resort near Ho Chi Minh City, Vietnam. The design incorporates time share units, residential apartments, serviced apartments and commercial programs, adding up to 30,000 sqm.
Vung Tau is a prosperous and popular seafront resort city rich in natural energy and other resources which attracts business and tourists from all over Vietnam. It is one of the most modern cities of Vietnam. ICE’s approach to the high density demands of the site was to create an iconic Urban Resort that transforms the high density and huge volumes into a dynamic, fluid configuration, that comes alive with shifting towers, ensuring maximization of the view in all directions of the ocean and Vung Tai City for every apartment.
This strategic design approach also enabled the design to pull the apartment towers away from each other at important angles, providing the maximum level of privacy and exclusivity despite the density. The towers are supported by a podium, which incorporates clubhouse and resort facilities as well as shopping and F&B in a richly programmed landscape garden.
With the shifting towers, the structure is reinforced by a space frame on the top floor, reinforcing and transferring shear loads to the central core. This makes the structure very economical at no more than 15% over a more standard ‘vertically loaded’ design as the shifting of the floor plates is kept minimal (rotation less than 90 degrees), and the engineering of the lateral forces are kept at a minimum.
- Architects: ICE – ideas for contemporary environments (local architect: Trinity & Associates)
- Location: Vung Tau, Vietnam
- Project Name: DC6 – Thang Long
- Client: DIC Group
- Kind of Project: Invited International Competition
- Prize: 2nd Prize
ICE Design Team: Ulrich Kirchhoff, Louise Low, Claudia Wigger, Minh Le Van, Tim Mao Yiqing
- Site Area: 55,000 sqm
- Construction Area: 330,000 sqm.
Source: ArchDaily
Pictures/ Courtesy of ICE
Vung Tau is a prosperous and popular seafront resort city rich in natural energy and other resources which attracts business and tourists from all over Vietnam. It is one of the most modern cities of Vietnam. ICE’s approach to the high density demands of the site was to create an iconic Urban Resort that transforms the high density and huge volumes into a dynamic, fluid configuration, that comes alive with shifting towers, ensuring maximization of the view in all directions of the ocean and Vung Tai City for every apartment.
This strategic design approach also enabled the design to pull the apartment towers away from each other at important angles, providing the maximum level of privacy and exclusivity despite the density. The towers are supported by a podium, which incorporates clubhouse and resort facilities as well as shopping and F&B in a richly programmed landscape garden.
With the shifting towers, the structure is reinforced by a space frame on the top floor, reinforcing and transferring shear loads to the central core. This makes the structure very economical at no more than 15% over a more standard ‘vertically loaded’ design as the shifting of the floor plates is kept minimal (rotation less than 90 degrees), and the engineering of the lateral forces are kept at a minimum.
- Architects: ICE – ideas for contemporary environments (local architect: Trinity & Associates)
- Location: Vung Tau, Vietnam
- Project Name: DC6 – Thang Long
- Client: DIC Group
- Kind of Project: Invited International Competition
- Prize: 2nd Prize
ICE Design Team: Ulrich Kirchhoff, Louise Low, Claudia Wigger, Minh Le Van, Tim Mao Yiqing
- Site Area: 55,000 sqm
- Construction Area: 330,000 sqm.
Source: ArchDaily
Pictures/ Courtesy of ICE
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Let's discover the luxurious house of Ha Kieu Anh 4 Jun 2011, 6:53 am
VNRE - Spacious villa of Ha Kieu Anh - Miss Vietnam 1992 in Lan Anh Villas, Luong Dinh Cua street, District 2, Hochiminh City. L-shaped house, land area of nearly 500 m2, in which 1/3 area is green. Architects have designed the house carrying shadow of a colonial villa with all rooms of the house overlooking the garden.
Sitting room is arranged at center of L-shaped as main axis of the function spaces. With pure Vietnamese materials such as furniture, bamboo blinds, silk pillows, Phu Ly ceramic vase,... to put breath of Asia into the living room as well as all the other rooms.
In the house, well hole is a unique creation. The walls are Champa Reliefs made elaborately as if they were stripped out from the ruined temples in the forest. Natural light combined with LED light and waterfall bring home a image of deserted tropical forest. The big transparent mirror frame around the well hole makes vivid picture of each storey.
Even the terrace is also a garden, creating privacy with the adjacent house.
Photos courtesy of Nha Dep Magazine & Ngoi Sao.
Sitting room is arranged at center of L-shaped as main axis of the function spaces. With pure Vietnamese materials such as furniture, bamboo blinds, silk pillows, Phu Ly ceramic vase,... to put breath of Asia into the living room as well as all the other rooms.In the house, well hole is a unique creation. The walls are Champa Reliefs made elaborately as if they were stripped out from the ruined temples in the forest. Natural light combined with LED light and waterfall bring home a image of deserted tropical forest. The big transparent mirror frame around the well hole makes vivid picture of each storey.Even the terrace is also a garden, creating privacy with the adjacent house.
Photos courtesy of Nha Dep Magazine & Ngoi Sao.
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Land prices fall in Ha Noi's outskirts 4 Jun 2011, 5:49 am
VNRE - Land prices on the outskirts of the capital city have dropped sharply and transactions have cooled down, a development that has worried investors but been welcomed by experts who consider it a good sign as land prices approach real market value.
Land prices in many construction projects are falling, with those on the black market in Kim Chung-Di Trach new urban area along Highway 32 falling below 10 million (US$476) per square metre.
Land prices at the Gleximco new urban area along Le Trong Tan Road have also decreased by between VND6 and VND12 million ($285-$571) depending on location, said Nguyen Van Bac, a land broker at a real estate agent on Nguyen Ngoc Nai Street.
Until the recent price falls, residential land was considered as a safe channel for investors due to stable prices. Two months ago, land prices in Thach Ban, Gia Lam District were offered at VND60-65 million per square metre; now they have fallen to VND53-58 million per square metre. Similarly, land prices in Gia Lam District have also decreased by between VND1-2 million per square metre depending on location.
A land broker in Long Bien District said that during the past two months, his office could not sell any plot of land. The real estate market was almost frozen, he said.
Nguyen Trung Kien, a land trader in Gia Lam District, attributed the slow pace of land transactions to a new policy from the central bank that limited lending for the real estate and securities sectors. As a result, fewer people were borrowing capital from banks.
According to central bank governor Nguyen Van Giau, loan interest rates for non-manufacturing sectors such as real estate and securities reached 25 per cent per year and borrowers can not afford such high lending rates.
Le Xuan Truong, director of a joint-stock real estate company, said the real estate market in Ha Noi had been in a virtual fever for a long time, with investors pushing up selling price far from the land's original price.
The market is temporarily frozen, some speculators suffered heavy losses or went bankrupt, as this is more likely to occur when lending from commercial banks is tightened. As a result, investors have to withdraw gradually from the real estate market.
This month, the central bank requested credit institutions and banks to develop plans and maintain credit growth below 20 per cent for the entire year. Under the request, banks and credit institutions are required to reduce credit growth and the ratio of outstanding loans to non-manufacturing sectors, especially real estate and securities markets.
Dang Hung Vo, a senior adviser to the Ministry of Natural Resources and Environment, said the message from the State Bank showed that capital for real estate would be scarce, but the real estate bubble would not burst and real estate prices still remained relatively high.
Vo emphasised that price decrease in real estate were a good sign showing that the market was approaching its real value.
Source: VNA
Land prices in many construction projects are falling, with those on the black market in Kim Chung-Di Trach new urban area along Highway 32 falling below 10 million (US$476) per square metre.Land prices at the Gleximco new urban area along Le Trong Tan Road have also decreased by between VND6 and VND12 million ($285-$571) depending on location, said Nguyen Van Bac, a land broker at a real estate agent on Nguyen Ngoc Nai Street.
Until the recent price falls, residential land was considered as a safe channel for investors due to stable prices. Two months ago, land prices in Thach Ban, Gia Lam District were offered at VND60-65 million per square metre; now they have fallen to VND53-58 million per square metre. Similarly, land prices in Gia Lam District have also decreased by between VND1-2 million per square metre depending on location.
A land broker in Long Bien District said that during the past two months, his office could not sell any plot of land. The real estate market was almost frozen, he said.
Nguyen Trung Kien, a land trader in Gia Lam District, attributed the slow pace of land transactions to a new policy from the central bank that limited lending for the real estate and securities sectors. As a result, fewer people were borrowing capital from banks.
According to central bank governor Nguyen Van Giau, loan interest rates for non-manufacturing sectors such as real estate and securities reached 25 per cent per year and borrowers can not afford such high lending rates.
Le Xuan Truong, director of a joint-stock real estate company, said the real estate market in Ha Noi had been in a virtual fever for a long time, with investors pushing up selling price far from the land's original price.
The market is temporarily frozen, some speculators suffered heavy losses or went bankrupt, as this is more likely to occur when lending from commercial banks is tightened. As a result, investors have to withdraw gradually from the real estate market.
This month, the central bank requested credit institutions and banks to develop plans and maintain credit growth below 20 per cent for the entire year. Under the request, banks and credit institutions are required to reduce credit growth and the ratio of outstanding loans to non-manufacturing sectors, especially real estate and securities markets.
Dang Hung Vo, a senior adviser to the Ministry of Natural Resources and Environment, said the message from the State Bank showed that capital for real estate would be scarce, but the real estate bubble would not burst and real estate prices still remained relatively high.
Vo emphasised that price decrease in real estate were a good sign showing that the market was approaching its real value.
Source: VNA
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VinaCapital invests 65 million USD in Ba Thien 2 Industrial Park 1 Jun 2011, 5:25 am
VNRE - VinaCapital Group and Vietnam Infrastructure Limited (VNI), the first publicly traded fund to focus on infrastructure assets in Vietnam, on May 31 kick off the Ba Thien 2 Industrial Park project with the total investment of 65 million USD.
Located in Binh Xuyen district, Vinh Phuc province (50km from Hanoi), the 308 - hectare Ba Thien 2 project is owned by Vina-CPK Company Ltd, a joint venture between VNI and CPK Vinh Phuc JSC.
VNI holds a majority stake in Vina-CPK Company Ltd, which was granted an investment license in February 2009 for the Ba Thien 2 project. The Phase 1 comprises 65 hectare was handed over to Vina-CPK in January this year. Compensation of an additional 50 hectare is in progress and is expected to complete in June 2011.
According to Mr Hoang Thieu Son, Vina-CPK General Director, the Ba Thien 2 project will stand as a green, clean and environmentally friendly model for the development of industrial park in the North of country. The project is strategically located and will benefit from the continued arrival of multinational companies in Vietnam, including those migrating from plants in China to take advantage of Vietnam’s lower costs.
“This project is expected to complete within 3 years. Investors hope to create around 30,000 jobs for local and neighboring provinces people, who will enjoy the a 12- hectare housing area inside the park”, Mr Thieu Son added.
The Ba Thien 2 Industrial Park welcomes both domestic and international investors who specialized in the light industrial, high technology and electronic equipment installation/manufacturing.
On the same day, Vina-CPK has signed the first leasing contract with Viglacera Thang Long company for a 20 - hectare parcel.
Source: CPV & ATP
Located in Binh Xuyen district, Vinh Phuc province (50km from Hanoi), the 308 - hectare Ba Thien 2 project is owned by Vina-CPK Company Ltd, a joint venture between VNI and CPK Vinh Phuc JSC.VNI holds a majority stake in Vina-CPK Company Ltd, which was granted an investment license in February 2009 for the Ba Thien 2 project. The Phase 1 comprises 65 hectare was handed over to Vina-CPK in January this year. Compensation of an additional 50 hectare is in progress and is expected to complete in June 2011.
According to Mr Hoang Thieu Son, Vina-CPK General Director, the Ba Thien 2 project will stand as a green, clean and environmentally friendly model for the development of industrial park in the North of country. The project is strategically located and will benefit from the continued arrival of multinational companies in Vietnam, including those migrating from plants in China to take advantage of Vietnam’s lower costs.
“This project is expected to complete within 3 years. Investors hope to create around 30,000 jobs for local and neighboring provinces people, who will enjoy the a 12- hectare housing area inside the park”, Mr Thieu Son added.
The Ba Thien 2 Industrial Park welcomes both domestic and international investors who specialized in the light industrial, high technology and electronic equipment installation/manufacturing.
On the same day, Vina-CPK has signed the first leasing contract with Viglacera Thang Long company for a 20 - hectare parcel.
Source: CPV & ATP
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Mapletree to launch three new property funds in China, Vietnam, Japan 26 May 2011, 11:15 am
VNRE - Real estate firm Mapletree Investments said it plans to launch three property funds worth US$2 billion over the next few years.
The funds will invest in commercial and mixed-use properties in China, Vietnam and Japan.
Mapletree, the real estate arm of Temasek Holdings, also announced a 90 per cent increase in its profit after tax to S$747 million for the full year ended March 31, driven by higher rental contributions from its assets.
Mapletree Investments hopes to attract institutional investors into its three new Asian property funds. The firm said that investors are looking at annual internal rate of returns of between 12 and 22 per cent from these funds.
For the Japan Fund, Mapletree will use US$300 million to US$500 million to buy more office properties in the outskirts of Tokyo city centre as well as Osaka and Nagoya.
Three of such properties are already present in the fund as seed assets. The firm is targeting a 18.5 per cent rate of return from the fund and it is expected to launch this year.
A similar amount will be used for the Vietnam Fund, which focuses on mixed retail, office and serviced apartment projects in major Vietnamese cities. It is expected for launch in 2013.
Mapletree Investments counts a serviced apartment property in Hanoi and an upcoming retail and serviced apartment project in Ho Chi Minh City. It is targeting an annual rate of return of 22 per cent.
Mapletree will also use US$500 million to US$1 billion for its new China fund. The fund's assets will be in first and second tier Chinese cities. The fund will acquire mixed developments with residential components in China.
Chua Tiow Chye, Group Chief Investment Officer of Mapletree Investments, said: "The idea of doing mixed development in second tiered cities is because the land prices are less bubbly than those in the first tier coastal cities of Beijing, Guangzhou and Shanghai and we think that there's more value that we can add in terms of bringing in new ideas, new concepts of development into this second tier cities."
Mapletree is targeting assets under management of S$20 billion to S$25 billion by March 2014, with a higher proportion of managed assets to owned assets. It currently owns and manages S$15.4 billion of assets in total.
Analysts said Mapletree's long-term strategy for China and the rest of Asia is on the right track.
Bernard Lee, visiting Associate Professor (Practice) with Singapore Management University, said: "It is an economy that has a shortage of high grade, especially grade A offices. An entity with a very well known track record in terms of managing these properties are going to make these projects successful over the medium to long-term."
Mapletree's revenues from 2010 grew 30 per cent to S$454 million.
Higher rental income from Vivocity, Mapletree Anson and Mapletree Business City drove revenues higher. Mapletree's newly-acquired overseas properties in Vietnam and Japan also drove revenues, said the firm.
The firm also saw higher fee income from the initial public offering of Mapletree Industrial Trust in October last year.
The firm said it has no plans to tap a public listing for additional funds due to its well-capitalised financial position. Mapletree said the total real estate assets it owned and managed hit S$15.4 billion at March 31, up 19 per cent from S$12.9 billion a year ago.
Source: Channel News Asia
The funds will invest in commercial and mixed-use properties in China, Vietnam and Japan.Mapletree, the real estate arm of Temasek Holdings, also announced a 90 per cent increase in its profit after tax to S$747 million for the full year ended March 31, driven by higher rental contributions from its assets.
Mapletree Investments hopes to attract institutional investors into its three new Asian property funds. The firm said that investors are looking at annual internal rate of returns of between 12 and 22 per cent from these funds.
For the Japan Fund, Mapletree will use US$300 million to US$500 million to buy more office properties in the outskirts of Tokyo city centre as well as Osaka and Nagoya.
Three of such properties are already present in the fund as seed assets. The firm is targeting a 18.5 per cent rate of return from the fund and it is expected to launch this year.
A similar amount will be used for the Vietnam Fund, which focuses on mixed retail, office and serviced apartment projects in major Vietnamese cities. It is expected for launch in 2013.
Mapletree Investments counts a serviced apartment property in Hanoi and an upcoming retail and serviced apartment project in Ho Chi Minh City. It is targeting an annual rate of return of 22 per cent.
Mapletree will also use US$500 million to US$1 billion for its new China fund. The fund's assets will be in first and second tier Chinese cities. The fund will acquire mixed developments with residential components in China.
Chua Tiow Chye, Group Chief Investment Officer of Mapletree Investments, said: "The idea of doing mixed development in second tiered cities is because the land prices are less bubbly than those in the first tier coastal cities of Beijing, Guangzhou and Shanghai and we think that there's more value that we can add in terms of bringing in new ideas, new concepts of development into this second tier cities."
Mapletree is targeting assets under management of S$20 billion to S$25 billion by March 2014, with a higher proportion of managed assets to owned assets. It currently owns and manages S$15.4 billion of assets in total.
Analysts said Mapletree's long-term strategy for China and the rest of Asia is on the right track.
Bernard Lee, visiting Associate Professor (Practice) with Singapore Management University, said: "It is an economy that has a shortage of high grade, especially grade A offices. An entity with a very well known track record in terms of managing these properties are going to make these projects successful over the medium to long-term."
Mapletree's revenues from 2010 grew 30 per cent to S$454 million.
Higher rental income from Vivocity, Mapletree Anson and Mapletree Business City drove revenues higher. Mapletree's newly-acquired overseas properties in Vietnam and Japan also drove revenues, said the firm.
The firm also saw higher fee income from the initial public offering of Mapletree Industrial Trust in October last year.
The firm said it has no plans to tap a public listing for additional funds due to its well-capitalised financial position. Mapletree said the total real estate assets it owned and managed hit S$15.4 billion at March 31, up 19 per cent from S$12.9 billion a year ago.
Source: Channel News Asia
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Vinpearl Luxury Nha Trang - A Tropical Paradise 26 May 2011, 7:04 am
VNRE - Exclusively set on a separate island in one of the world’s 30 most beautiful bays, Vinpearl Luxury Nha Trang situates itself comfortably on Hon Tre Island, Nha Trang. Built with superior construction standards and architectural styles of a world class tropical luxury resort, and housing over 84 beautiful coastal villas, Vinpearl Nha Trang is an ideal destination for luxury holidays that claim perfection and privacy.
Setting foot in Cam Ranh International Airport, your exclusive journey to Vinpearl Luxury Nha Trang begins with a 40-minute charted car ride followed by a lush 7-minute cruise onboard a luxury yacht, the Aquabus 44. As you are transported from the mainland to this tropical island paradise, an overwhelming sense of awe takes over. The entrenched satisfaction you feel and the soul stirring beauty that surrounds is only a precursor to the beginning of a poetic journey of discovery filled with surprises and excitement.
From a distance, Vinpearl Luxury Nha Trang resembles a beautiful painting of water and mountain. Soon, you will see the emergence of 84 private luxury bungalows with sea views and uniquely designed title terraces that redefine the beauty and attractiveness of the bay’s landscape.
Vinpearl Luxury Nha Trang offers you a wide selection of plush villas and luxurious rooms that provide the highest standards of comfort and indulgence. All rooms are fully equipped with modern facilities and come with attached balconies that boast some of the most spectacular views of the ocean and vast white sand beaches of this divine destination. Not to mention the privileged access you will have to several private swimming pools and beaches located around the island. You can come prepared to rest, relax and soak in the golden sunshine at Vinpearl Luxury Nha Trang.
In addition, all customer care services at Vinpearl Luxury Nha Trang from airport shuttle services to health and beauty spa services to entertainment facilities and fine-dining services, are in compliance with the highest criteria emphasizing luxury, privacy, unique class, comfort and warmth.
Moreover, to meet your every need and bring to your holiday a heightened sense of care, privacy and comfort, all services at Vinpearl Luxury Nha Trang are available to you 24/7.
You can have free strolls around the grounds of the resort, walk around the pool, feel the warm sunshine on your skin and enjoy the breathtaking views on the windswept coast green or you can keep your fitness up at the resort gym endowed with the latest state of the art facilities, relax at the world-class resort spa or even enjoy the great culinary offerings of the top notch restaurants located conveniently around the island. For a more private, individually tailored experience, you can request for all abovementioned services to be brought right to your doorstep and be assured of the greatest quality and standards of service.
Customer Care Management at Vinpearl Luxury Nha Trang is in a class of its own. Employees are attentive, professional, dedicated and knowledgeable in customer care, acting not only as guides who assist you in using the advanced services systems of the resort but also as personal care providers who will listen to your every need and render the most efficient standards of service. All these have been set in place to bring to you a pleasurable holiday experience steeped in luxury and class. Wait no longer! Come indulge in the experience of a lifetime!
For further information, please contact:
Setting foot in Cam Ranh International Airport, your exclusive journey to Vinpearl Luxury Nha Trang begins with a 40-minute charted car ride followed by a lush 7-minute cruise onboard a luxury yacht, the Aquabus 44. As you are transported from the mainland to this tropical island paradise, an overwhelming sense of awe takes over. The entrenched satisfaction you feel and the soul stirring beauty that surrounds is only a precursor to the beginning of a poetic journey of discovery filled with surprises and excitement.
From a distance, Vinpearl Luxury Nha Trang resembles a beautiful painting of water and mountain. Soon, you will see the emergence of 84 private luxury bungalows with sea views and uniquely designed title terraces that redefine the beauty and attractiveness of the bay’s landscape.
Vinpearl Luxury Nha Trang offers you a wide selection of plush villas and luxurious rooms that provide the highest standards of comfort and indulgence. All rooms are fully equipped with modern facilities and come with attached balconies that boast some of the most spectacular views of the ocean and vast white sand beaches of this divine destination. Not to mention the privileged access you will have to several private swimming pools and beaches located around the island. You can come prepared to rest, relax and soak in the golden sunshine at Vinpearl Luxury Nha Trang.
In addition, all customer care services at Vinpearl Luxury Nha Trang from airport shuttle services to health and beauty spa services to entertainment facilities and fine-dining services, are in compliance with the highest criteria emphasizing luxury, privacy, unique class, comfort and warmth.
Moreover, to meet your every need and bring to your holiday a heightened sense of care, privacy and comfort, all services at Vinpearl Luxury Nha Trang are available to you 24/7.
You can have free strolls around the grounds of the resort, walk around the pool, feel the warm sunshine on your skin and enjoy the breathtaking views on the windswept coast green or you can keep your fitness up at the resort gym endowed with the latest state of the art facilities, relax at the world-class resort spa or even enjoy the great culinary offerings of the top notch restaurants located conveniently around the island. For a more private, individually tailored experience, you can request for all abovementioned services to be brought right to your doorstep and be assured of the greatest quality and standards of service.
Customer Care Management at Vinpearl Luxury Nha Trang is in a class of its own. Employees are attentive, professional, dedicated and knowledgeable in customer care, acting not only as guides who assist you in using the advanced services systems of the resort but also as personal care providers who will listen to your every need and render the most efficient standards of service. All these have been set in place to bring to you a pleasurable holiday experience steeped in luxury and class. Wait no longer! Come indulge in the experience of a lifetime!
For further information, please contact:
Vinpearl Luxury Nha Trang
Add: Hon Tre Island, Nha Trang, Vietnam.
Тel.: 84.58.359 0611 - Fax: 84.58.359 0613
E-mail: info@vinpearlluxury-nhatrang.com
Website: www.vinpearl.com
Add: Hon Tre Island, Nha Trang, Vietnam.
Тel.: 84.58.359 0611 - Fax: 84.58.359 0613
E-mail: info@vinpearlluxury-nhatrang.com
Website: www.vinpearl.com
()
Vinpearl launches Vinpearl Luxury Nha Trang 26 May 2011, 3:47 am
VNRE - Designed and built in a harmonious blend of nature’s beauty and high-end interior furnishings and appliances, Vinpearl Luxury Nha Trang is located on the stunning Hon Tre Island dream paradise where you can immerse yourself in the clear blue sea and heavenly sunlight. After more than a year of meticulous construction, Vinpearl Joint Stock Company is officially launching this luxurious Resort on 28 May 2011.
For this occasion during the period from 01 June 2011 to 30 November 2011, Vinpearl Luxury Nha Trang is pleased to offer a “Special Opening Offer” for guests that book reservations before 30 June 2011.
Accordingly, guests will be entitled to an incredible special treatment: free roundtrip airport transfer, free transfer from the mainland to the Island by luxury yacht, complementary welcome fruits basket, one set menu dinner for two, complementary 60-minute foot massage for two, daily buffet breakfast for two, unlimited free access to Vinpearl Amusement Park and unlimited use of the cable car system at Vinpearl Luxury Nha Trang. This offer is applicable for each two-night accommodation for 2 persons at Ocean View Villa and is priced at US$499+ (Click here for details).
Source: Vinpearl Land
For this occasion during the period from 01 June 2011 to 30 November 2011, Vinpearl Luxury Nha Trang is pleased to offer a “Special Opening Offer” for guests that book reservations before 30 June 2011.Accordingly, guests will be entitled to an incredible special treatment: free roundtrip airport transfer, free transfer from the mainland to the Island by luxury yacht, complementary welcome fruits basket, one set menu dinner for two, complementary 60-minute foot massage for two, daily buffet breakfast for two, unlimited free access to Vinpearl Amusement Park and unlimited use of the cable car system at Vinpearl Luxury Nha Trang. This offer is applicable for each two-night accommodation for 2 persons at Ocean View Villa and is priced at US$499+ (Click here for details).
Source: Vinpearl Land
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Entertainment property key to tourism development 25 May 2011, 7:32 am
VNRE - Like other property segments, entertainment property projects play an important role in the market as it, besides bringing profits for developers and offering services to communities, will support significantly to the development of the tourism industry.
Thanks to having developed large-scale theme parks, some countries have become more popular in tourists’ hearts and minds, attracting thousands of visitors every year.
However, developing entertainment projects with support facilities attractive enough to lure local and international visitors is a problem that requires adequate investment and market research for most property developers.
Speaking at a property conference and exhibition Vietnam International Real Estate Connection (VIREC), hosted by G4B Branding Real Estate Marketing Company in HCMC last week, Nguyen Van Tuan, head of the Vietnam National Administration of Tourism, said Vietnam was a popular destination for international visitors. This was proved by the increasing number of international arrivals every year, as well as the increase in the number of local tourists.
Tuan said the country’s tourism industry strategy was shifting towards being more competitive. Therefore, developing leisure property projects would contribute to supporting the sector, going along with the orientation of the country’s tourism development strategy set by the Ministry of Culture, Sports and Tourism.
Thibault Paquin, principal of the Hong Kong-based company Celebrating Life Asia, shared experiences to participants at the event themed ‘Modern Entertainment Investment Inspires the Next Development’ and said that the leisure industry had changed a lot with many entertainment projects underway.
Paquin said among Asian countries, China with huge yearly revenue from the local tourism market had developed some large theme parks in the country. Countries such as Thailand, Cambodia, Malaysia and Indonesia were going ahead with their plans to develop amusement projects.
He presented participants with three model investments, saying privately developed projects were often small in scale and generate low profits to developers.
Meanwhile in the second model, local government would support developers by offering land with infrastructure development.
International investors often chose this model thanks to having support from local government; however, it sometimes required longer negotiations with local authorities. In the third model investment, a developer would develop land and infrastructure, and then invite other partners to jointly develop the project.
Looking to the current situation in Vietnam, he suggested local developers should combine the first and third models to develop an entertainment project.
In fact, local group Khang Thong has called for partners to invest in its entertainment complex which covers 266 hectares along the Vam Co Dong River in Long An Province’s Ben Luc District.
The USD2 billion Happy Land project, which is likened to the world’s famous resorts such as Disneyland or Universal Studio, will include leisure and water parks, commercial centers, three-to-five-star hotels, restaurants, discotheques, and indoor and outdoor theaters.
Luke Riley, Asian regional director for Sanderson Group International, said there were certain aspects developers should not overlook, including market research and feasibility studies and adequate investment.
Site and area evaluation, demographic assessment, competitor analysis and forecast attendance figures are what a developer should do before rolling up its sleeves to develop an entertainment project. He said adequate investment will help developers swiftly return on investment.
Paquin said that China spent 10 years trying to attract international theme park developers to the country, and wondered whether Vietnam could and should attract foreign developers now.
Tong Van Nga, vice chairman of the Vietnam Real Estate Association, said the developing entertainment project required a specific plan; and each region has its own characters, thus a theme park project should be developed based on those characters.
He, however, said that there was still a long way to go before Vietnam calls for international investors to develop the entertainment industry.
Source: Saigon Times
Thanks to having developed large-scale theme parks, some countries have become more popular in tourists’ hearts and minds, attracting thousands of visitors every year.However, developing entertainment projects with support facilities attractive enough to lure local and international visitors is a problem that requires adequate investment and market research for most property developers.
Speaking at a property conference and exhibition Vietnam International Real Estate Connection (VIREC), hosted by G4B Branding Real Estate Marketing Company in HCMC last week, Nguyen Van Tuan, head of the Vietnam National Administration of Tourism, said Vietnam was a popular destination for international visitors. This was proved by the increasing number of international arrivals every year, as well as the increase in the number of local tourists.
Tuan said the country’s tourism industry strategy was shifting towards being more competitive. Therefore, developing leisure property projects would contribute to supporting the sector, going along with the orientation of the country’s tourism development strategy set by the Ministry of Culture, Sports and Tourism.
Thibault Paquin, principal of the Hong Kong-based company Celebrating Life Asia, shared experiences to participants at the event themed ‘Modern Entertainment Investment Inspires the Next Development’ and said that the leisure industry had changed a lot with many entertainment projects underway.
Paquin said among Asian countries, China with huge yearly revenue from the local tourism market had developed some large theme parks in the country. Countries such as Thailand, Cambodia, Malaysia and Indonesia were going ahead with their plans to develop amusement projects.
He presented participants with three model investments, saying privately developed projects were often small in scale and generate low profits to developers.
Meanwhile in the second model, local government would support developers by offering land with infrastructure development.
International investors often chose this model thanks to having support from local government; however, it sometimes required longer negotiations with local authorities. In the third model investment, a developer would develop land and infrastructure, and then invite other partners to jointly develop the project.
Looking to the current situation in Vietnam, he suggested local developers should combine the first and third models to develop an entertainment project.
In fact, local group Khang Thong has called for partners to invest in its entertainment complex which covers 266 hectares along the Vam Co Dong River in Long An Province’s Ben Luc District.
The USD2 billion Happy Land project, which is likened to the world’s famous resorts such as Disneyland or Universal Studio, will include leisure and water parks, commercial centers, three-to-five-star hotels, restaurants, discotheques, and indoor and outdoor theaters.
Luke Riley, Asian regional director for Sanderson Group International, said there were certain aspects developers should not overlook, including market research and feasibility studies and adequate investment.
Site and area evaluation, demographic assessment, competitor analysis and forecast attendance figures are what a developer should do before rolling up its sleeves to develop an entertainment project. He said adequate investment will help developers swiftly return on investment.
Paquin said that China spent 10 years trying to attract international theme park developers to the country, and wondered whether Vietnam could and should attract foreign developers now.
Tong Van Nga, vice chairman of the Vietnam Real Estate Association, said the developing entertainment project required a specific plan; and each region has its own characters, thus a theme park project should be developed based on those characters.
He, however, said that there was still a long way to go before Vietnam calls for international investors to develop the entertainment industry.
Source: Saigon Times
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Apartment projects switching to house, villas 25 May 2011, 7:29 am
VNRE - Some apartment building projects have been adjusted into house and villa projects because investors are having difficulty in selling apartments.
The apartment market was very buoyant in 2007. During that time, apartments sold as soon as construction on them started.
Now, due to high lending interest rates, people do not want to borrow money from banks to buy property hence owners have no takers for their apartments. This has resulted in a surfeit of apartments.
Tens of thousands of apartments have no takers even though apartment owners are doing their best to lure buyers and even lowering selling prices.
In order to get back investment capital quickly, project owners have switched to building houses and villas rather than many apartments that are difficult to sell.
For instance, an area of nearly two hectares in District 7 in Ho Chi Minh City was an apartment building project with about 1,000 apartments. When the project was launched, its owner found it difficult to sell flats so he switched to building houses.
Customers then flocked to buy all the 100 houses that will be constructed on the 2-hectare area.
Similarly, an apartment project in District 9 has been changed into a villa project after the owner realized that the apartment market was on the wane. The owner claimed that after the villa project was launched, most of the villas were registered quickly.
He said that owners did not profit greatly by selling houses or villas but they sell more rapidly than flats and investments are recovered quickly.
According to the HCMC Department of Planning and Architecture, some investors in Binh Chanh and Thu Duc districts and districts 8 and 2 have asked for approval to build houses and villas rather than apartment buildings.
An authority from the department said building houses and villas has become a trend to stimulate demands in the property market, which is in a slump. Therefore, relevant agencies should be flexible to approve house and villa projects depending on the location.
Investors should be allowed to develop houses and villas in areas that are far from the city center, close to the river or in rural areas.
Reported by Luong Thien & Hoang Yen | SGGP
The apartment market was very buoyant in 2007. During that time, apartments sold as soon as construction on them started.Now, due to high lending interest rates, people do not want to borrow money from banks to buy property hence owners have no takers for their apartments. This has resulted in a surfeit of apartments.
Tens of thousands of apartments have no takers even though apartment owners are doing their best to lure buyers and even lowering selling prices.
In order to get back investment capital quickly, project owners have switched to building houses and villas rather than many apartments that are difficult to sell.
For instance, an area of nearly two hectares in District 7 in Ho Chi Minh City was an apartment building project with about 1,000 apartments. When the project was launched, its owner found it difficult to sell flats so he switched to building houses.
Customers then flocked to buy all the 100 houses that will be constructed on the 2-hectare area.
Similarly, an apartment project in District 9 has been changed into a villa project after the owner realized that the apartment market was on the wane. The owner claimed that after the villa project was launched, most of the villas were registered quickly.
He said that owners did not profit greatly by selling houses or villas but they sell more rapidly than flats and investments are recovered quickly.
According to the HCMC Department of Planning and Architecture, some investors in Binh Chanh and Thu Duc districts and districts 8 and 2 have asked for approval to build houses and villas rather than apartment buildings.
An authority from the department said building houses and villas has become a trend to stimulate demands in the property market, which is in a slump. Therefore, relevant agencies should be flexible to approve house and villa projects depending on the location.
Investors should be allowed to develop houses and villas in areas that are far from the city center, close to the river or in rural areas.
Reported by Luong Thien & Hoang Yen | SGGP
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Capital for Realty Market: Comprehensive & Drastic Management Measures Required 25 May 2011, 6:59 am
VNRE - In order to intensify realty market management and put real estate market back to the track, Nguyen Hong Quan, Minister of Construction has submitted to Prime Minister a document working out measures to stabilise the realty market.
In the opinion of Ministry of Construction, these measures will keep the market under control, resist speculation and price increase, stabilize the market, truly reflect market’s supply and demand capacity as well as avoid shocking and freezing the market which creates negative impacts on credit system and social life.
Forming housing savings fund
Despite the fact that for years, Ministry of Construction as well as functional authorities have issued many measures to direct the realty market’s development, in which the core is to stimulate supply of low-priced housing, since realty financial system hasn’t been completed, the market’s development still relies much on governmental currency and credit policies, there are still many difficulties in keeping realty’s price under control.
At the moment, capital for realty market’s development is mainly mobilized from bank system and from population. Stable capital in medium and long term have many difficulties whereas interest rate on loans for short term is very high, which greatly influences on realty products’ value. Especially, banks tightening credit on realty market has challenged investors in implementing projects, even stopped many works, causing waste and reducing supply for the market.
It is so obvious about the influence of credit policies on realty market’s development, however, for years, there are still confusions in working out solutions to this. According to statistics from Ministry of Construction, the current realty credit growth rate is over 20 percent per year but there has not been distinction between necessary realty and unnecessary one. As a result, it is easy for capital for market’s development to only flow in highly profitable segments such as luxurious housing, realty of tourism, resorts, which makes saturated market be subject to breakage. The solution given out by Ministry of Construction is release criteria set of realty lending for credit institutes in order to best allocate capital.
Another solution is to issue measures to limit, then stop using cash in realty transaction, especially in case of capital mobilization contracts, trading future formed housing and renting housing. This measure is considered the one to help minimize risks for partners as well as ease the pressure from cash. In addition, according to Ministry of Construction, the Government should soon study to form housing savings fund to assist labors in their buying houses, pilot the model of realty trust investment fund as implemented in some other countries, creating more supply, beside credit institutes, for realty market.
Tightening real estate management
The proportion of filled apartments in new residential areas that will be put into practice is also investigated to details by Ministry of Construction. Accordingly, in 18 residential areas in Hanoi, the proportion of storey condos put into usage comes up to approximately 100 percent, followed by segments of side by side apartments with 80 percent, while the segment of condo only reaches 58 percent. The main reasons supposed by Ministry of Construction are incomprehensive technical and social infrastructure of these projects, difficulties in transport and movement while speculation and property reserve are still popular. Functional authorities haven’t worked out measures to investigate, fine investors of delayed-progress projects. etc
In order to completely diminish “application-approval” mechanism, Ministry of Construction demands localities to seriously observe regulations on choosing investors of business housing in form of project tender as regulated in Decree 71. Intensify implementation of macro management measures, land clearance; build technical infrastructure and then tender on right of using cleared land. The Government will chair the tender to ensure publicity, transparency and land rent to be submitted to the national budget etc.
Reported by Luong Tuan | VCCI News
In the opinion of Ministry of Construction, these measures will keep the market under control, resist speculation and price increase, stabilize the market, truly reflect market’s supply and demand capacity as well as avoid shocking and freezing the market which creates negative impacts on credit system and social life.Forming housing savings fund
Despite the fact that for years, Ministry of Construction as well as functional authorities have issued many measures to direct the realty market’s development, in which the core is to stimulate supply of low-priced housing, since realty financial system hasn’t been completed, the market’s development still relies much on governmental currency and credit policies, there are still many difficulties in keeping realty’s price under control.
At the moment, capital for realty market’s development is mainly mobilized from bank system and from population. Stable capital in medium and long term have many difficulties whereas interest rate on loans for short term is very high, which greatly influences on realty products’ value. Especially, banks tightening credit on realty market has challenged investors in implementing projects, even stopped many works, causing waste and reducing supply for the market.
It is so obvious about the influence of credit policies on realty market’s development, however, for years, there are still confusions in working out solutions to this. According to statistics from Ministry of Construction, the current realty credit growth rate is over 20 percent per year but there has not been distinction between necessary realty and unnecessary one. As a result, it is easy for capital for market’s development to only flow in highly profitable segments such as luxurious housing, realty of tourism, resorts, which makes saturated market be subject to breakage. The solution given out by Ministry of Construction is release criteria set of realty lending for credit institutes in order to best allocate capital.
Another solution is to issue measures to limit, then stop using cash in realty transaction, especially in case of capital mobilization contracts, trading future formed housing and renting housing. This measure is considered the one to help minimize risks for partners as well as ease the pressure from cash. In addition, according to Ministry of Construction, the Government should soon study to form housing savings fund to assist labors in their buying houses, pilot the model of realty trust investment fund as implemented in some other countries, creating more supply, beside credit institutes, for realty market.
Tightening real estate management
The proportion of filled apartments in new residential areas that will be put into practice is also investigated to details by Ministry of Construction. Accordingly, in 18 residential areas in Hanoi, the proportion of storey condos put into usage comes up to approximately 100 percent, followed by segments of side by side apartments with 80 percent, while the segment of condo only reaches 58 percent. The main reasons supposed by Ministry of Construction are incomprehensive technical and social infrastructure of these projects, difficulties in transport and movement while speculation and property reserve are still popular. Functional authorities haven’t worked out measures to investigate, fine investors of delayed-progress projects. etc
In order to completely diminish “application-approval” mechanism, Ministry of Construction demands localities to seriously observe regulations on choosing investors of business housing in form of project tender as regulated in Decree 71. Intensify implementation of macro management measures, land clearance; build technical infrastructure and then tender on right of using cleared land. The Government will chair the tender to ensure publicity, transparency and land rent to be submitted to the national budget etc.
Reported by Luong Tuan | VCCI News
()
Plan to sell government guest house raises concern 23 May 2011, 8:05 am
VNRE - The Ministry of Finance’s decision to allow the Ministry of Foreign Affairs to auction off the Government Guest House in Ho Chi Minh City to raise funds for other projects is making local residents and architects worry.
Under the plan, the HCMC People’s Committee will soon decide a starting price for investors to bid for the right to use the 3.5-ha guest house, located at No. 1 on Ly Thai To Street in District 10 or what is considered a “golden spot” in HCMC.
Despite the monetary benefit of selling the old French-style villa, many are worried lest it should be turned to trade centers or modern apartments and thus lose its historical and architectural values.
Architect Le Quang Ninh for instance said for whatever economic purpose it should serve, this villa, and several others like it throughout Saigon, reflects a great architectural style typical of pre-1975 Saigon and should thus be preserved.
Researcher Nguyen Dinh Dau agreed.
Dau said this villa lies within a group of green and low-rise landscapes including the Saigon Zoo, Le Duan Street, Reunification Palace, and the area from Nguyen Thi Minh Khai Street to Ly Thai To Street that were built by the French to attract winds from the eastern seas to cool down the Sai Gon – Cho Lon residential areas.
Ninh suggests the best way to use this villa should be to turn it into a five-star restaurant for tourists.
By doing so, both monetary and architectural interests can be served, he said.
Nguyen Thanh Quy, a senior resident in Ward 1, District 10, said the government should not destroy old villas to build modern apartments.
“The old trees in these villas are like the city’s lungs,” Quy said. “If they are destroyed, billions of dongs can’t buy them back.”
Source: Tuoi Tre
Under the plan, the HCMC People’s Committee will soon decide a starting price for investors to bid for the right to use the 3.5-ha guest house, located at No. 1 on Ly Thai To Street in District 10 or what is considered a “golden spot” in HCMC.
Despite the monetary benefit of selling the old French-style villa, many are worried lest it should be turned to trade centers or modern apartments and thus lose its historical and architectural values.
Architect Le Quang Ninh for instance said for whatever economic purpose it should serve, this villa, and several others like it throughout Saigon, reflects a great architectural style typical of pre-1975 Saigon and should thus be preserved.
Researcher Nguyen Dinh Dau agreed.
Dau said this villa lies within a group of green and low-rise landscapes including the Saigon Zoo, Le Duan Street, Reunification Palace, and the area from Nguyen Thi Minh Khai Street to Ly Thai To Street that were built by the French to attract winds from the eastern seas to cool down the Sai Gon – Cho Lon residential areas.
Ninh suggests the best way to use this villa should be to turn it into a five-star restaurant for tourists.
By doing so, both monetary and architectural interests can be served, he said.
Nguyen Thanh Quy, a senior resident in Ward 1, District 10, said the government should not destroy old villas to build modern apartments.
“The old trees in these villas are like the city’s lungs,” Quy said. “If they are destroyed, billions of dongs can’t buy them back.”
Source: Tuoi Tre
City realty conference puts spotlight on entertainment projects 18 May 2011, 9:24 am
VNRE - The 2011 Vietnam International Real Estate Connection workshop, set for May 20 in Ho Chi Minh City, will focus on investment into entertainment, the organizers said.
The full-day conference will take place at the Rex Hotel with the theme “Modern Entertainment Investment Inspires the Next Development,” said Ms. Nguyen Xuan Tra Mi, general director of Great For Business Co.
The Ho Chi Minh City-based company and the Vietnam Real Estate Association co-organize the event, expected to see foreign guest speakers from international realty developers such as Forrec from Canada, Polin Waterparks & Pool Systems from Turkey, Singapore’s Sanderson Group, Leisure Entertainment Company Worldwide from the US, and India’s Premierworld Technology, according to the organizers.
Ms. Mi said that Vietnam’s Ministry of Construction, Ministry of Planning and Investment, Ministry of Culture, Sports and Tourism, and the National Administration of Tourism considered the conference a major event in providing “practical support and consultancy for the entertainment industry.”
What are seen as highly potential projects in Vietnam will be introduced during the conference.
Among the participants will be Mr. Nguyen Tran Nam, Vice Minister of Construction, Mr. Nguyen Van Tuan, chief of the Vietnam National Administration of Tourism, and Mr. Nguyen The Hung, deputy director of the Foreign Investment Office for the South (Ministry of Planning and Investment).
A welcome dinner will be held at Hotel Liberty 6 in District 1 as the first connection between international experts and Vietnamese stakeholders, Ms. Mi added.
Reported by Tuong Thuy | SGGP
The full-day conference will take place at the Rex Hotel with the theme “Modern Entertainment Investment Inspires the Next Development,” said Ms. Nguyen Xuan Tra Mi, general director of Great For Business Co.The Ho Chi Minh City-based company and the Vietnam Real Estate Association co-organize the event, expected to see foreign guest speakers from international realty developers such as Forrec from Canada, Polin Waterparks & Pool Systems from Turkey, Singapore’s Sanderson Group, Leisure Entertainment Company Worldwide from the US, and India’s Premierworld Technology, according to the organizers.
Ms. Mi said that Vietnam’s Ministry of Construction, Ministry of Planning and Investment, Ministry of Culture, Sports and Tourism, and the National Administration of Tourism considered the conference a major event in providing “practical support and consultancy for the entertainment industry.”
What are seen as highly potential projects in Vietnam will be introduced during the conference.
Among the participants will be Mr. Nguyen Tran Nam, Vice Minister of Construction, Mr. Nguyen Van Tuan, chief of the Vietnam National Administration of Tourism, and Mr. Nguyen The Hung, deputy director of the Foreign Investment Office for the South (Ministry of Planning and Investment).
A welcome dinner will be held at Hotel Liberty 6 in District 1 as the first connection between international experts and Vietnamese stakeholders, Ms. Mi added.
Reported by Tuong Thuy | SGGP
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Norman Estates at Danang Beach Resort 18 May 2011, 9:10 am
VNRE - Norman Estates at Danang Beach Resort is an exclusive, gated "Community within a Community" that offers a sophisticated lifestyle environment with meticulous attention to detail and care for design.
These beautiful contemporary residences feature special touches such as floor-to-ceiling opening glass terrace doors, outdoor salas and living areas, plunge pools, generous terraces and balconies with an emphasis on entertaining and seamless indoor/outdoor living. Residents have access to the golf clubhouse, Rocksalt, the resort's walking and bike trails and also enjoy exclusive rights to use the Norman Estates private recreation club facilities including a swimming pool.
Designed by internationally acclaimed architects AW2, Norman Estates joins Greg Norman's international collection of residences in the United States, Middle East and Australia and is the first of its kind to be built in Asia.
Location
Nestled within Danang Beach Resort, the largest and most highly regarded property development in Central Vietnam, Norman Estates is just 20 minutes away from Danang's CBD by car and within equally close proximity to the ancient town of Hoi An. Its prime location between the ocean and the spectacular Greg Norman-designed golf course makes Norman Estates one of the most sought after neighbourhoods in all of Vietnam.
Villas
Norman Estates features 33 contemporary villas, most of which feature breathtaking views of the ocean, the golf course or a beautiful water feature.
Discerning buyers have the opportunity to select from 4 thoughtfully designed floor plans that integrate the best of local culture with the latest architecture, technology and lifestyle features.
Amenities
Private recreation club
Norman Estates residents enjoy the exclusive use of a private owner's-only recreation club, located within an easy walk of all Norman Estates villas in the centre of the community. The main building features a wet kitchen, office and reception area, library and games room, media room, and lockers and change rooms. Outside, a swimming pool oasis (including children's pool), outdoor BBQ and serving pavilion are beautifully framed by lush tropical landscaping. This unique amenity can only be accessed by Norman Estates owners and their invited guests and is the ideal venue for entertaining VIP's or simply relaxing with family and friends.
The RockSalt
The RockSalt, part of Danang Beach Resort, is an all new first-class facility for entertainment and leisure. Whether you are looking for a relaxing spa, working out in the state-of-the-art fitness center, lounging poolside, playing an invigorating game of tennis or BBQ-ing with your friends and family, the Club covers it all. Set to be the ultimate destination in the area for food, drinks and evening entertainment, the RockSalt is a place to meet your friends and family and enjoy fantastic resort-style amenities and services.
Danang Golf Club
Danang Golf Club offers members and guests a world-class golf course featuring natural hazards and some of Asia's most spectacular ocean views.
Recently voted one of the world's top 10 new golf courses, The Dunes Course, designed by golfing legend Greg Norman, offers 18 challenging holes alongside a pristine beachfront, with stunning panoramic views of The Cham Islands and Marble Mountains. The Dunes Course is now fully operational and welcoming true golf enthusiasts.
For further information, please contact:
These beautiful contemporary residences feature special touches such as floor-to-ceiling opening glass terrace doors, outdoor salas and living areas, plunge pools, generous terraces and balconies with an emphasis on entertaining and seamless indoor/outdoor living. Residents have access to the golf clubhouse, Rocksalt, the resort's walking and bike trails and also enjoy exclusive rights to use the Norman Estates private recreation club facilities including a swimming pool.
Designed by internationally acclaimed architects AW2, Norman Estates joins Greg Norman's international collection of residences in the United States, Middle East and Australia and is the first of its kind to be built in Asia.
Location
Nestled within Danang Beach Resort, the largest and most highly regarded property development in Central Vietnam, Norman Estates is just 20 minutes away from Danang's CBD by car and within equally close proximity to the ancient town of Hoi An. Its prime location between the ocean and the spectacular Greg Norman-designed golf course makes Norman Estates one of the most sought after neighbourhoods in all of Vietnam.
Villas
Norman Estates features 33 contemporary villas, most of which feature breathtaking views of the ocean, the golf course or a beautiful water feature.
Discerning buyers have the opportunity to select from 4 thoughtfully designed floor plans that integrate the best of local culture with the latest architecture, technology and lifestyle features.
Amenities
Private recreation club
Norman Estates residents enjoy the exclusive use of a private owner's-only recreation club, located within an easy walk of all Norman Estates villas in the centre of the community. The main building features a wet kitchen, office and reception area, library and games room, media room, and lockers and change rooms. Outside, a swimming pool oasis (including children's pool), outdoor BBQ and serving pavilion are beautifully framed by lush tropical landscaping. This unique amenity can only be accessed by Norman Estates owners and their invited guests and is the ideal venue for entertaining VIP's or simply relaxing with family and friends.
The RockSalt
The RockSalt, part of Danang Beach Resort, is an all new first-class facility for entertainment and leisure. Whether you are looking for a relaxing spa, working out in the state-of-the-art fitness center, lounging poolside, playing an invigorating game of tennis or BBQ-ing with your friends and family, the Club covers it all. Set to be the ultimate destination in the area for food, drinks and evening entertainment, the RockSalt is a place to meet your friends and family and enjoy fantastic resort-style amenities and services.
Danang Golf Club
Danang Golf Club offers members and guests a world-class golf course featuring natural hazards and some of Asia's most spectacular ocean views.
Recently voted one of the world's top 10 new golf courses, The Dunes Course, designed by golfing legend Greg Norman, offers 18 challenging holes alongside a pristine beachfront, with stunning panoramic views of The Cham Islands and Marble Mountains. The Dunes Course is now fully operational and welcoming true golf enthusiasts.
For further information, please contact:
VinaLiving
Add: 17th Foor, Sun Wah Tower, 115 Nguyen Hue, District 1, HCMC
Tel: 84.8.3821 9930 - Fax: 84.8.3821 9932
Savills Hotline: 0947 906 999 - Email: salesdanang@vinacapital.com
Add: 17th Foor, Sun Wah Tower, 115 Nguyen Hue, District 1, HCMC
Tel: 84.8.3821 9930 - Fax: 84.8.3821 9932
Savills Hotline: 0947 906 999 - Email: salesdanang@vinacapital.com
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