Lotte Group, Phat Dat sign agreement for Thu Thiem Eco Smart City

Lotte Group, Phat Dat sign agreement for Thu Thiem Eco Smart City

Lotte Group and Phat Dat Real Estate have signed an investment cooperation agreement for the Lotte Eco Smart City Thu Thiem project.

The agreement was signed on June 26, marking a major milestone in the implementation of one of the largest and most strategically located urban developments in Thu Thiem New Urban Area.

Jun Sung Ho, general director of Lotte Properties HCMC (left), and Nguyen Van Dat, chairman of Phat Dat, at the signing ceremony in Ho Chi Minh City on June 26

Lotte Eco Smart City Thu Thiem is a large-scale mixed-use urban complex integrating Grade A office towers, retail and commercial podiums, hospitality and service facilities, and public spaces within a unified ecosystem developed in accordance with international standards for urban planning, development, and operations with total investment in the project is estimated at VND60 trillion ($2.3 billion).

Under the transaction structure, Phat Dat will co-develop the residential component of the project across Blocks 2-2, 2-4, and 2-6. At the same time, the company will take the lead in developing the commercial towers at Blocks 2-1 and 2-3, as well as the four-storey retail and service podium and the basement levels.

This structure enables Phat Dat to partner with Lotte Group on the residential component while independently developing key commercial assets, thereby strengthening its presence in Ho Chi Minh City's emerging central business district.

Speaking at the signing ceremony, Shin Man Soo, senior vice president of Lotte Engineering and Construction, said that since being selected as the project's developer in 2017, the development has undergone a long journey marked by perseverance and sustained efforts.

“Alongside the rapid development of Ho Chi Minh City and the tremendous value of the Thu Thiem New Urban Area, the project has evolved into a mega-development with a total investment exceeding $2.2 billion,” Soo said.

Earlier this March, with the trust and support of Ho Chi Minh City authorities, the project received approval to allow an external investor to acquire a 35 per cent equity stake.

“Today, we are delighted to partner with Phat Dat for the next stage of development. Once again, I would like to express my sincere appreciation to the Vietnamese government for approving the participation of an external investor in the project, thereby laying the foundation for this important partnership milestone,” said Shin Man Soo.

According to Soo, Phat Dat’s acquisition of a 35 per cent equity stake represents more than a capital partnership. It marks the beginning of a strategic collaboration that will generate key synergies to enhance the overall value of the project.

“Lotte Eco Smart City Thu Thiem is a modern mixed-use commercial and residential development located at the most prime site in Ho Chi Minh City. I am confident that the combination of Lotte’s global expertise in retail, hospitality, and construction with Phat Dat’s extensive local experience will create the strongest possible synergies,” he said.

“We believe that the most successful development projects are not measured solely by the economic value they create, but by the lasting legacy they leave behind, one that contributes to the long-term future of both the city and the community,” Soo said.

Nguyen Van Dat, chairman of Phat Dat said that Lotte Eco Smart City Thu Thiem is a large-scale venture and one of strategic significance in accelerating the development of the Thu Thiem New Urban Area.

“With the partnership between Lotte and Phat Dat, we believe the project possesses all the necessary strengths to become a new landmark of modern urban development in Vietnam, while making a meaningful contribution to the continued growth of Ho Chi Minh City,” Dat said.

Lotte Eco Smart City Thu Thiem artist's impression. Photo: Phat Dat

Lotte Eco Smart City Thu Thiem is in Functional Zone 2A, the core area of the Thu Thiem New Urban Area, which is planned to become Ho Chi Minh City's new international administrative, financial, commercial, and services hub.

The project spans six adjacent land plots (2–1 to 2–6), covering approximately 7.54 hectares, making it one of the few remaining large-scale land banks in the heart of the new urban centre.

The site borders the Thu Thiem Central Square and Central Lake, enjoys direct connectivity to the Thu Thiem Tunnel, and overlooks the Saigon River with unobstructed views of Ho Chi Minh City's existing central business district, giving it one of the most iconic locations in the Thu Thiem New Urban Area.

In terms of transport infrastructure, the project enjoys a rare multimodal connectivity advantage. It is located adjacent to the planned To Huu Metro Station, Ba Son Bridge, and the transport network serving Ho Chi Minh City's International Financial Center.

The development sits next to the planned Thu Thiem Metro Station, the starting point of the proposed Thu Thiem–Long Thanh Metro Line, which will provide direct access to Long Thanh International Airport.

The project also falls within the catchment area of Metro Line No.1 (Ben Thanh-Suoi Tien) and its planned extension to Dong Nai and Long Thanh. Together, this integrated transport network is expected to accelerate the development of Ho Chi Minh City's new administrative and economic centre over the coming decades.

During the investment cooperation agreement signing ceremony for the Lotte Eco Smart City Thu Thiem project, Phat Dat Real Estate Development Corporation and Military Commercial Joint Stock Bank also signed a financing agreement under which MB Bank will fully finance Phat Dat's equity contribution to the project.

The agreement further strengthens the financial structure of Phat Dat's investment while providing the company with a solid foundation to fulfil its investment commitments in line with the project's implementation schedule.

VIR