Mo Market transaction mired in long dispute
Mo Market transaction mired in long dispute
The long dispute between two main partners on the massive upgrade of Mo Market shopping centre in Hanoi came to a head last week as the sides in the row began preparing legal documents for a potential court case.
The conflict has continuously simmered between the centre’s developer - the Vinaconex Trading Development Joint Stock Company (VTDC) and VPCapital who had bought into five podium storeys of more than 21,000 square metres at a price of $30.6 million back in 2010.
Conflicts between two sides, mainly focusing on construction quality, payment schedules, appraisal dossiers and hand-over procedures have raged for most of the life of the project’s construction.
According to Thai Quoc Minh, chairman cum general director of VPCapital, the developer is now two months behind schedule on construction, delaying the operation of the site.
VTDC’s authorised legal representative lawyer Nguyen Thanh Son however claimed that the comapny had not violated the contract and VP Capital had not concluded its obligations in order to be handed over the property.
Minh retorted that VTDC’s incompetence had cost millions of dollars to the VP Capital, including heavy implications for loan interest repayment totalling more than VND170 billion ($8 million) after the hand-over deadline was missed.
Despite this, Minh promised that he would work closely with VTDC to find a solution in order to put the centre into operation as soon as possible.
The conflicts come to the boil last week when the two sides were preparing documents for an approaching court case.
VP Capital said it regretted going to court, but other investors had forced their hand.
With the total investment of more than VND1,500 billion ($71.4 million), Mo Market Shopping Centre will consist of one 15-floor block and another 25-storey building, connected via a five storey podium.
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