Vietinbank plans to sell $441-million project in Ciputra urban area

The report in the 2018 extraordinary shareholders meeting of Vietinbank on December 08 stated that the bank's Board of Directors would submit to shareholders for approval of the plan on restructuring the Vietinbank Tower project in Ciputra urban area with three options.

In the first option, the bank will prioritize the transfer of all the project‘s assets, then rent the 68-storey tower to serve as the Headquarter. Upon the expiry of the lease term, VietinBank will repurchase the assets at the symbolic price or negotiated price.

For option two, part of the project’s assets including 48-storey Tower, base, and other assets (if agreed) will be transferred. Vietinbank still keeps the 68-storey tower for serving as its Headquarter.

Accordingly, the bank will ask the State Bank of Vietnam (SBV) to adjust the total investment of the 68-storey tower to quickly complete the tower.

In the last option, VietinBank will continue to deploy the project, accelerate the progress and protect the legitimate rights and interests of the bank during the time the project has not been partially or fully transferred.

The Board of Directors of Vietinbank said that the bank's plan to increase charter capital has not yet been implemented, affecting the limit of capital invested in fixed assets (including Vietinbank Tower project).

Under the investment plan approved in 2013, Vietinbank Tower has a total investment of over VND10,267 billion ($441 million) and is divided into three phases. The project consists of two 68-and 48-storey towers with eight bases and two basements on an area of about 30,000 square metres.

The 68-storey tower is planned to serve as Vietinbank’s headquarter. The rest of the project includes hotels, apartments for rent, commercial centre and service area. However, according to Vietinbank, the project is currently prolonged under construction.

The project was commenced in 2010 but until now only the foundations, bases and some levels of the two towers have been completed. After the completion deadline was missed in 2014, the project is expected to be completed by the end of this year. However, difficulties in investment capital have made the bank to restructure the project.