VinaCapital revives delayed Times Square Hanoi project
VinaCapital revives delayed Times Square Hanoi project
VinaLand – a closed-end fund governed by VinaCapital – is attempting to make hay while the sun shines by reviving its $50-million Times Square Hanoi shopping complex, which has been delayed for more than seven years.
David Blackhall, manager at VinaLand, told VIR that after a long downturn in Hanoi’s property market, real estate in the My Dinh area, where Times Square Hanoi is located, is taking off, and therefore it is high time for the developer to revisit the project.
“Things are looking a lot better, and it seems the trend will continue this year, so we are gearing up to restart development and new investment shortly,” he said. “As part of our development strategy we are looking at options for large anchor tenants, as they could get involved during the detailed design phase.”
Although Blackhall did not go into details regarding Times Square Hanoi’s future tenants, he said that the shopping complex would be modified to become a mixed-use project that includes retail space, hotels, serviced apartments, offices, and residential units.
Located in a prime location in the western part of Hanoi opposite the National Convention and Exhibition Centre, Times Square Hanoi was once thought to be the most advanced design for a mixed-use development in Hanoi.
The $50 million project was licensed as a 65:35 joint venture between VinaLand and its domestic developer Thang Long GTC in 2008. At that time, it was expected to be a complex comprising 20,000 square metres of high-end office space for lease, a 300-room 5-star hotel, and a shopping centre, and was expected to begin operating in 2011.
Explaining the long project delay, Blackhall said that “Over the past few years, economic factors such as high interest rates and low liquidity, in conjunction with a very challenging real estate market, have prevented investors from proceeding with this development. Also, the My Dinh area struggled to attract large numbers of commercial tenants (both office and retail) to fill vacant spaces, while hotels found it difficult to compete with rivals located around the central business districts, like Hoan Kiem.”
Another major factor delaying the project is height restrictions for buildings in the My Dinh area surrounding the National Convention Centre, in line with the Ministry of Construction’s Circular No.26/2009/TT-BXD. Because of this circular, VinaLand has to revise its design.
