VietinBank wants to sell skyscraper project

By Tran Anh - Mar 26, 2019 | 08:20 AM GMT+7

TheLEADERConstruction of the mixed-use development has been stalled for years.

VietinBank wants to sell skyscraper project
Vietinbank Tower has lied idle for years at the gate of Ciputra urban area. Photo by Forty Media.

VietinBank is restructuring development plan for a skyscraper project in Hanoi which has been put on hold for years in Ciputra International City. 

The bank initially planned to build a 68-storey office tower and a 48-storey hotel tower on a retail podium at the cost of around $434 million. Once complete, the bank would use one tower as its headquarters, but was unable to continue funding the construction since it encountered barriers in investment in real estate.

The bank management told the 2018 extraordinary general meeting of shareholders that its first priority now was transferring the entire assets of the Vietinbank Tower project and then leasing the 68-storey tower for its headquarters. After leasing period expires, the bank would purchase the assets.

In case of failure to sell the entire project, VietinBank would partially sell the 48-storey tower, the podium and other assets and retain the 68-storey tower as its head office while asking the State Bank of Vietnam to adjust its total investment to complete this tower.

VietinBank Tower is located in Ciputra International City, a 230-hectare urban area developed by a joint venture between UDIC and Ciputra.

However, the joint venture has developed only a part of the project and transferred some other parts to sub-investors.

Apart from VietinBank Tower, Ciputra's largest commercial centre has been sold to Korea’s Lotte Group to build Lotte Mall. The foundation of this project was completed but construction had been halted since 2012.

Sunshine Group is emerging as a prominent developer in Ciputra area. Apart from two nearly completed projects namely Sunshine City and Sunshine Riverside, this developer owns at least four other projects around Ciputra.