Limitless World Vietnam recently received an amended investment certificate for its $550 million Halong Star hotel project in northern Vietnam.
According to the Quang Ninh People’s Committee, the project’s schedule was extended until 2015, four years later than its previous certificate.
Vuong Duc Lanh, chairman of Viet My-Halong Company - the domestic partner in Limitless World Vietnam, said the amended investment certificate would help investors kick-off the project again.
“We are actively doing the legal investment procedures to lease land from Quang Ninh People’s Committee within the first quarter of 2012,” Lanh said.
Lanh said Limitless had received financial commitments from international and domestic bankers who would finance the project. The Halong Star hotel project got underway in 2007 as a joint venture between Limitless, an affiliate of Dubai World, Viet-My Ha Long Joint Stock Company and the International Property Investment Partners LLC.
It had total investment capital of $220 million and ground-breaking took place in 2008. The total registered investment capital then was increased to $550 million in 2009 and the third partner the International Property Investment Partners LLC transferred its minor stake to the Vietnamese partner.
However, in 2009 Dubai World was burnt by the global crisis and it had to halt all projects worldwide to restructure $26 billion in debt that mostly affected its property affiliates, Nakheel and Limitless. In 2010, Limitless announced that it had fixed all financial problems and continued the project. However, the company must propose for amended investment certificate after three years’ delay.
Halong Star is a high-end and low density development near world heritage recognised Halong Bay.
Located 200 metres above the bay, it will comprise a 250-room, five-star hotel with a 500-seat conference centre, a 100-room luxury boutique hotel, more than 230 villas, and hundreds of townhouses and apartments for up to 4,000 residents and many public facilities.
According to the new timeline, villas and semi-detached houses and a four-star hotel will be finished in 2014, while others such as a five and six-star hotel, clubs and multi-function facilities will be finished in 2015.