The under pressure property market is still attempting to dig itself out of a hole.
Pacific Property and Infrastructure Development Joint Stock Company (PPI) is sourcing investors for business cooperation or transfer of its two property projects in Ho Chi Minh City’s Thu Duc district.
The first project is the Saigon Water Garden mixed-use complex in Hiep Binh Chanh ward. Earlier, PPI planned to turn this two hectare project site into a mixed-use complex with luxurious apartments, trading and service areas at VND1,275 billion ($60.7 million) investment. PPI is offering the project at VND15 million ($710) per square metre.
The second project PPI Tower, also positioned in Hiep Binh Chanh ward, sold at VND29 million ($1,380) per square metre. In early 2011 PPI poured VND313 billion ($14.9 million) to turn this 2,400 square metre site into a 15-storey tower with 80 apartments and 8,000sqm office area for lease. The project was slated to come online in 2012.
Besides PPI, many other property developers are mulling transferring their projects.
For instance, Hoa Binh Construction and Real Estate Trading (HBC) announced it had discontinued investing in an office tower project with a 44,500sqm floor area in Phu My Hung’s new urban development in District 7.
HBC sold the project for $12 million as to get the project off the drawing board, the company has to prepare beforehand over $20 million meanwhile it could not issue shares to raise capital at this time due to difficult market conditions.
Saigon Fuel Joint Stock Company (SFC) has sourced shareholder approval to sell its office-for-lease tower project in Ho Chi Minh City’s Binh Thanh district for VND40 billion ($1.9 million).
In the same fashion, Van Phat Hung Joint Stock Company contemplated transferring several property projects in Nha Be, Districts 2 and 9 to restructure its investment sources.
“Property firms selling their projects are nothing abnormal amid the market downturn. However, few firms are financially capable for buyouts in a still hostile business climate,” said Thu Duc Housing Development Corporation (THD) chairman Le Chi Hieu.
“TDH has many proposals for project transfers, but we will just consider some good projects,” Hieu added.
CBRE Vietnam chief Marc Townsend said “There is not a crisis devoid of sense. A crisis for someone, is an opportunities for others. For investors wanting to jump into Vietnam’s property market, there are multiple opportunities.”