Hoan Cau Group announced the sale of Tan Thuan Tay Residential Area (Diamond City), which is located in Tan Thuan and Binh Thuan wards in District 7, to Xuan Mai Sai Gon Construction Investment Joint Stock Company (Xuan Mai Sai Gon).
The deal has been approved by the People's Committee of Ho Chi Minh City according to Decision 1051/QD-UBND dated March 19. However, the transferred area does not include some land lots marked V1 to V5 and V7 for resettlement purposes.
Diamond City is a commercial, service and residential complex located on Nguyen Van Linh Street, District 7 and only five kilometres from the center of Ho Chi Minh City.
Diamond City was introduced in 2008, but Hoan Cau could not develop items as planned. Meanwhile, the group used the land lots in this project as collateral for loans at Sacombank.
At the end of last year, Vietnam Asset Management Company (VAMC) purchased debts of nearly VND2.6 trillion ($114 million) including principal and interest of Hoan Cau’s member companies at Sacombank with a collateral of 50,000 square metres of land in this project.
After becoming a new investor of the project, Xuan Mai Sai Gon will develop the project under the new name of Eco-Green Saigon. According to some real estate brokerage firms in Ho Chi Minh City, the project will consist of six blocks with a maximum of 35 storeys and will provide about 4,000 apartments to the market.
Xuan Mai Sai Gon was established by Xuan Mai Corp and other shareholders, with charter capital of VND1 trillion ($44 million). Xuan Mai Sai Gon is a State-owned enterprise, operating mainly in the North.
In addition to the traditional field of construction, Xuan Mai is implementing many real estate projects in Hanoi such as Eco Green City, Xuan Mai Riverside and Xuan Mai Complex, Xuan Mai Sparks Tower in Duong Noi.