Lotte, Phat Dat join forces on Thủ Thiêm smart city project

Lotte, Phat Dat join forces on Thủ Thiêm smart city project

The two companies said they aim to develop the project in line with international standards while contributing to HCM City's vision of building a new international administrative, financial, commercial and service centre in Thủ Thiêm.

Delegates from Lotte and Phat Dat at the signing ceremony on Friday. — Photo courtesy of Phat Dat

South Korea's Lotte Corporation and Phat Dat Real Estate Development Corporation entered into a strategic partnership to jointly develop the Lotte Eco Smart City Thủ Thiêm project, marking Phat Dat's direct participation in one of the largest urban developments in the core area of Thủ Thiêm New Urban Area.

Under the cooperation agreement, signed on on June 26, Phat Dat will become a co-developer of the project, reinforcing its strategy of focusing resources on high-value assets in central HCM City.

The partnership combines Lotte's international expertise in urban development with Phat Dat's more than 20 years of experience and in-depth knowledge of the Vietnamese market. 

The two companies said they aim to develop the project in line with international standards while contributing to HCM City's vision of building a new international administrative, financial, commercial and service centre in Thủ Thiêm.

Shin Man Soo, vice chairman of Lotte E&C, described Lotte Eco Smart City Thủ Thiêm as one of the group's flagship developments in Vietnam.

"We believe the combination of Lotte's international development experience and Phat Dat's deep understanding of the Vietnamese market will provide a solid foundation for delivering a project that meets the highest standards and creates sustainable value for all stakeholders," he said.

Nguyễn Văn Đạt, chairman of Phat Dat's Board of Directors, said the project carries significance beyond its investment scale.

"Lotte Eco Smart City Thủ Thiêm is not only a large-scale investment project but also plays a special role in promoting the formation of Thủ Thiêm's new urban centre," Đạt said. 

"With the partnership between Lotte and Phát Đạt, we believe the project possesses all the necessary conditions to become a new symbol of modern urban development in Việt Nam while making a positive contribution to the strong growth of HCM City."

Also on Friday, Phat Dat signed a capital financing agreement with MBBank during the ceremony. 

MBBank will finance Phat Dat's entire capital contribution to the Lotte Eco Smart City Thủ Thiêm project, which has a total investment of VNĐ60 trillion (US$2.3 billion). 

Under the investment agreement with Lotte, Phat Dat will hold a 35 per cent stake in the project. 

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