A joint venture has just been established to develop a $115-million real estate project, on a land of over 40,000 square metres.
On May 14, 2018, Vietnam Manufacturing & Export Processing Co., Ltd (VMEP) announced that the company had signed a contract on forming a joint venture with Daewon - Thuduc Housing Development JSC (DWTD).
The new legal entity is SYM - DWTD Housing Development Co., Ltd with charter capital of $23 million, of which DWTD contributed 49 per cent and VMEP amounted to 51 per cent.
According to the announcement, the joint venture will invest in a complex project in La Khe Ward, Ha Dong District, Hanoi including mixed-use office, commercial center, supermarket, multilevel apartments, low-rise residential houses and kindergartens for sale, lease and/or sublease and providing other related services.
The total investment capital of the joint jenture is expected at $115 million, of which 20 per cent will be contributed by the parties to the charter capital of the joint venture. The remaining 80 per cent will be financed by borrowings from Vietnamese banks or foreign banks to the joint venture.
This is the land on which VMEP built a spare-part manufacturing and motorbike assembly factory. However, due to the fact that the land is within the planned area of mixed land use (i.e. residential, commercial and other purposes), VMEP intended to redevelop the land to a mixed-use complex to create greater values.
The cleared site will be handed over to the SYM - DWTD joint venture within 10 months from the issuance date of the Enterprise Registration Certificate of the joint venture for implementation of the project.
An amount of $2.5 million will be paid by the joint venture to VMEP as compensation for the removal of all its existing assets from the land and the demolition of building for redevelopment of the land.
VMEP, which was founded in 1992 and wholly owned by Taiwan-based CHINFON Group, is the first motorcycle manufacturing and trading company in Vietnam. The customers are familiar with company’s SYM brand.
In May 2000, VMEP was transferred from CHINFON to SANYANG. VMEP’s business rights were transferred from SANYANG to Gold Way Holdings Corporation (GWH) in December 2005.
VMEP's partner, DWTD, is a joint venture between Thu Duc Development Joint Stock Company (Thu Duc House, stock code: TDH) and South Korea’s Daewon Group.
Thu Duc House is a well-known real estate company in the South with many projects such as Binh Chieu, Phuoc Long and Truong Tho residential areas. The company also has expanded its presence in Hanoi through a joint venture with Daewon and Phong Phu Corporation to implement the project of high-end Green Pearl apartments at 378 Minh Khai street.
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