Developer spat resolved
Developer spat resolved
Malaysia’s Gamuda Land has taken over a 40 per cent stake in the joint-venture development of Celadon City, due to major differences among investors regarding the project’s concept and direction.
Disagreements over direction of Celadon project caused Gamuda Land to seize control
The negotiation to transfer the stake of the $1.1 billion Celadon City lasted for three years and Gamuda Land took over the 40 per cent stake from three Vietnamese partners - Saigon Thuong Tin Real Estate, Thanh Thanh Cong, and An Phu Gia Joint Stock Company. Located on an area of 82 hectares, Celadon City is in Son Ky ward, in Ho Chi Minh City’s Tan Phu district. The transfer value was VND1.014 trillion ($48.2 million) by share and another VND386 billion ($18.3 million) by cash.
According to Chow Chee Fan, general director of Celadon City, the reason for this acquisition was differences in concept for developing the project.
“The differences caused both sides to come to the conclusion that Gamuda should take full control of this project,” Chow told VIR.
“With our strong financial capacity and a wealth of experience in mix-used urban development projects in Malaysia, we are able to sustain and financially develop this project,” Chow confirmed.
Gamuda Land wants to proceed with the project under an international concept, with a large garden and high quality apartments, similar to its work in Malaysia. The domestic partners, meanwhile, wanted to build and sell the apartments as soon as possible in order to recover their capital investment.
All payment, Chow said, was finished by the end of June.
With the estimated original investment capital of VND24.8 trillion ($1.1 billion), the project, which kicked off in 2010, includes a cultural and entertainment centre, education, commercial and sports facilities. Currently, around 500 apartments in blocks A and B have been sold, and the foundation of blocks C, D and E of Ruby precinct have been completed. Celadon City will provide more than 7,300 apartments in total.
The first thing Gamuda Land did after taking control of the project was the launch of more than 370 apartments in Block C, with prices from $1,200 per square metre.
In order to keep its commitment to providing the local community with the best facilities, the company will start the construction of a sport and recreation club within the next three years, with the investment capital of $15 million. Primary and secondary schools are slated to follow.
Gamuda Land, a division of Malaysian property developer Gamuda Berhad, has other large-scale projects in Hanoi, including the 500ha Gamuda City and the 323ha Yen So project, with the total investment capital up to $5 billion.
