A joint venture between FLC Group and Lotte Land has been formed in early June with a chartered capital of over $24 million to invest in a real estate project in Hanoi.
According to the National Agency for Business Registration, Lotte FLC JSC has just been established this month with a chartered capital of VND556.5 billion ($24.1 million) to operate in the field of real state.
The company is the joint venture between the Vietnamese property giant FLC Group and Lotte Land, the subsidiary of Korean conglomerate Lotte Group.
Lotte Land, which was set up in Vietnam in February, will own 60 per cent of Lotte FLC. FLC and its affiliates will hold the remaining 40 per cent of the joint venture.
FLC chairman Trinh Van Quyet said at a recent general shareholders meeting that that the joint venture will be rolling out a project on a 6.4-hectare plot of land in Dai Mo ward, Nam Tu Liem district, Hanoi.
FLC Group won the auction for the land back in 2017 at a price of VND860 billion ($37.3 million). Under the initial plan, the project was expected to complete in mid 2019, featuring 91 townhouses, 54 villas, a kindergarten, a high-rise building and an affordable residential housing complex.
The project however was not carried out as planned. Given the chipping in of Lotte Land, its construction is anticipated to kick start as soon as this third quarter.
Established on February 15, 2019, Lotte Land registered a chartered capital of VND409.1 billion ($18 million) and is wholly owned by Lotte Engineering and Construction Co., Ltd. (Lotte E&C), a subsidiary of Lotte Group.
Two months later, Lotte Land bolstered its chartered capital to VND1,106 billion ($48.4 million).
The fattened capital together with the cooperation with FLC have now signified Lotte’s concrete goal to ramp up its investments in Vietnam’s real estate market.
Over the first half of the year, Lotte E&C was also seen to actively seal several deals with local property developers to fulfill such goal.
In May, the firm signed a strategic partnership with Novaland Group to build apartment complexes and carry out urban development project for the city and its surrounding areas project in Ho Chi Minh City.
Earlier on in January, Lotte E&C also combined forces with Hung Loc Phat Corporation to develop a real estate project called Blue Star in District 7 of Ho Chi Minh City.
Lotte E&C stated at the time that it is looking forward to accelerating its investments in the potential real estate markets of Hanoi and Ho Chi Minh City via companies that own an ample lank bank.
Last year, Lotte E&C inked a deal with Phu Cuong Group to develop housing projects in Vietnam.
Apart from real estate, Lotte E&C has ventured into the local transport infrastructure projects, with the metro lines in Hanoi and Ho Chi Minh City are one of the examples.
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