VAMC to auction half-completed tower for at least $268 million

Vietnam Asset Management Company (VAMC) has sent a notice on the auction of a construction project located at No.34 Ton Duc Thang, Ho Chi Minh City (Saigon One Tower project).

The asset list includes the ownership and exploitation of the entire basement, trade center, office for lease, and ancillary facilities and ownership of nearly 15,000 square metres of luxury apartments of Saigon One Tower project.

The estimated starting price of this asset is VND6,110 billion ($268 million). The project which was a collateral offered by the Saigon One Tower Joint Stock Company was seized by VMAC last August to collect debts.

The company has signed a debt purchase agreement with Maritime Bank and Dong A Bank since 2015. However, after two years of signing the contract, Sai Gon One Tower does not hand over collateral.

A notice from the State Bank of Vietnam said that the debt purchase agreements signed between VAMC and some credit institutions on the debts of the customer groups up to now had reached over VND7,000 billion (about $331 million).

However, by the end of 2011, the project was suspended after an 80 per cent completion of the work volume. Over the past six years, this project is stagnantly lying right in the heart of Ho Chi Minh City.

The shareholders of the project include M&C Corporation (49 per cent), Dong A Joint Stock Commercial Bank (6 per cent), Dong A Bank Securities Company Limited (10 per cent), Phu Nhuan Jewelry Joint Stock Company (5 per cent). Saigontourist Company contributes the remaining 30 per cent with the land use rights.

After that, Dong A Bank Securities Company Limited, Phu Nhuan Jewelry Joint Stock Company and Saigontourist Company one by one announced to divest from this project.

A 2012 financial report of the company said that the project was borrowing VND3,004 billion ($132 million), half of which was provided by Maritime Bank. Two loans of VND667 billion ($29.3 million) and VND835 billion ($36.7 million) were offered by Lien Phat Joint Stock Company and Minh Quan company, respectively.