$86 million resort project fuels tough competition in Central Vietnam

The 11- hectare Maibu MGM Hoi An project (Malibu), which consists of 93 villas and 690 five-star condotels, will be commenced next month and expected to be handed over by early 2020. 

After the required procedures are completed, the project will officially be offered for sale in the middle of September 2018. Currently, nearly half of condotels of the project have planned for sale to Korean customers.

This project has total investment of nearly $86 million, of which equity accounts for around 30 per cent. It is estimated that Malibu can generate the total revenue of approximately $86-million to $107 million.

Indochina Hoi An Beach Villas, a member company of Bamboo Capital and the investor of Malibu, has entered the strategic cooperation with major domestic and international partners in terms of design, construction, construction supervision, finance ...

Specifically, Malibu will be designed by the U.S.’s BAKH, constructed by Tradico, funded by South Asia Bank and Vietcombank, distributed by Singapore-based ERA and Hai Phat, etc.

At the signing ceremony, many customers expressed their concern about the liquidity of Malibu because the resort is located on Da Nang- Quang Nam prime route stretching along from My Khe to Cua Dai beaches where there have existed many high-end resorts under fierce competition.

However, Nguyen Ho Nam, Chairman of Bamboo Capital, is not worried about the project’s condotels that will be unsalable.

Nam explained, Malibu is located in the most favorable location on the Da Nang-Quang Nam prime route, right on Ha My beach which was in 2017 voted by Telegraph as one of the ten most beautiful beaches in Asia. Land on Ha My beach is hardly available and Malibu is one of very few new projects in this area to be launched this year.

Besides, the project is managed by MGM Resorts International, an S&P 500® global entertainment company providing global entertainment services.

In 2003, MGM Resort entered Vietnam with strategies to develop high-end resorts with casinos. However, it left Vietnam soon since it failed to reach the plan due to various problems. In this return to Vietnam, MGM Resort has changed its strategies, wishing to become the leading resort – hotel manager in Vietnam.

Furthermore, the offered selling price and promotions of Malibu condotels will surprise the market. These condotels are offered at selling price of $2,149 per square metre, cheaper than their quality and those in the area at around $3,000 per square metre.

Especially, Malibu‘s customers will be granted a red book, permanent residence for long term rather than 50 years like many other projects with the same segment. Bamboo Capital is also committed to bringing high returns to investors thanks to good service quality and reasonable room rates.

Also in the signing ceremony, Bamboo Capital revealed that it will be involved in a huge project named Hoa Sen Island with a total investment of $8 billion in Danang, of which Malaysia-based Pavilion Group contributes largest proportion.