Lotte's large-scale mixed-use development project in Tu Tiem, Ho Chi Minh City, is set to move forward again. After a groundbreaking ceremony in 2022, the project faced delays but will resume construction in collaboration with Pat Dat Real Estate Development in October. The total project cost is approximately 60 trillion dong (about $3.16 billion), featuring a complex that will include hotels, residential units, and commercial facilities, with a maximum height of 60 stories.
According to local media, including VnExpress, Pat Dat Real Estate Development announced that construction on Blocks 2-1 and 2-3 of the 'Lotte Eco Smart City Tu Tiem' project will officially begin on October 23. The two blocks are expected to be completed 36 months after construction starts, with a target completion date of October 23, 2029.
The Lotte Eco Smart City Tu Tiem is a large mixed-use complex being developed in the 2A functional area of the Tu Tiem new city. It is located in An Khanh Ward, Ho Chi Minh City, adjacent to a central plaza and lake.
The entire site covers approximately 7.5 hectares and is divided into six plots, from 2-1 to 2-6. The estimated project cost is around 60 trillion dong (about $3.16 billion). The development will include five underground levels and a maximum of 60 above-ground floors, integrating smart technology into the hotel, residential, and commercial facilities.
Lotte and Pat Dat will divide responsibilities for the project. Pat Dat will co-develop the residential sectors in Blocks 2-2, 2-4, and 2-6, while overseeing the overall development of the commercial and service sectors in Blocks 2-1 and 2-3.
The initially constructed Blocks 2-1 and 2-3 will consist of a four-story commercial and service podium along with underground levels. The total floor area of the two blocks is approximately 171,580 square meters. Pat Dat is currently preparing to ensure construction begins on schedule.
The project is being implemented by Lotte Properties HCMC. Pat Dat announced on July 31 that Lotte Properties HCMC had fulfilled all financial obligations related to the land, amounting to 17.569 trillion dong (about $926 million).
In August, Pat Dat paid 7.666 trillion dong and acquired a 35% stake in Lotte Properties HCMC. Following this transaction, the ownership structure of Lotte Properties HCMC is as follows: Lotte Shopping 30.59%, Hotel Lotte 22.94%, Lotte Construction 11.47%, and Pat Dat 35%, with a total equity value of approximately 21.903 trillion dong.
Lotte's Tu Tiem project has faced prolonged delays due to legal and land payment issues. The project was first conceived in 1997, and the Ho Chi Minh City People's Committee signed an investment contract with Lotte in 2017. Although Lotte held a groundbreaking ceremony in September 2022, construction did not proceed as planned due to complications related to share structures among affiliates, external funding, and the scale and timing of land payments.
The turning point for the project came in June of last year when Ho Chi Minh City confirmed the land price for the project at over 16.19 trillion dong, allowing Lotte to proceed with the land payment and continue the project. The initial plan included constructing 11 towers, each up to 50 stories high, to create a mixed-use complex with financial, commercial, service, office, accommodation, residential, and public spaces. The project cost has increased significantly from the initially announced 20.1 trillion dong to 60 trillion dong. Once completed, the project is expected to contribute to establishing a financial, banking, commercial, and service hub in the Tu Tiem new city.
* This article has been translated by AI.
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