Bitexco Transfers Ownership of One Central HCM
Bitexco’s recent transfer of its stake in the Saigon Glory project to Phương Đông Hà Nội marks a significant strategic maneuver aimed at optimizing its project portfolio. This transaction, finalized on October 4, 2023, not only enhances management capabilities for the One Central HCM development but also positions it as a potential landmark in Ho Chi Minh City. With an estimated investment of $500 million, the implications of this transition are complex, raising questions about financial outcomes, developmental timelines, and future partnerships in a rapidly changing market environment. What does this mean for the city’s urban development strategy?
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Transition of Ownership Details
On October 4, 2023, Bitexco successfully finalized the transfer of ownership of its entire equity stake in Saigon Glory to Phương Đông Hà Nội, marking a significant shift in project management.
Established in May 2019 and based in Hoàn Kiếm, Hanoi, Phương Đông Hà Nội is now positioned to oversee the future development of Saigon Glory.
This transition involves key figures including Trần Thanh Tú, Chairman, and Trần Thị Minh Hiếu, along with General Director Nguyễn Anh Đức.
The registration update confirming this new ownership structure was completed on October 9, 2023.
This strategic move reflects Bitexco’s ongoing efforts to optimize its project portfolio while enabling Phương Đông Hà Nội to utilize its knowledge in managing large-scale urban projects effectively.
Overview of One Central HCM
One Central HCM represents a significant development in the urban scenery of Ho Chi Minh City, with construction commencing in late 2022.
Situated in Bến Thành, District 1, the project spans 8,600 m² and boasts a strategic location with four prominent street frontages: Phạm Ngũ Lão, Calmette, Lê Thị Hồng Gấm, and Phố Đúc Chính.
Saigon Glory, established in June 2018, serves as the primary investor in this ambitious undertaking.
Designed to enhance urban development and attract substantial investment, One Central HCM aims to become a landmark in the city.
The project features two towers linked by a podium, with the west tower designated for office and hotel use, while the east tower will accommodate residential units and hotel facilities.
Financial Implications
The financial implications of the One Central HCM project are significant, with total investment estimated at approximately $500 million. This substantial investment emphasizes the project’s potential impact on the local economy and real estate market.
Previously, Bitexco pledged its entire equity stake at Saigon Glory as collateral for a loan from Techcombank, secured against 10 vacant lots valued at 10,000 billion VND. The loan’s maturity spans from June 2025 to November 2026, highlighting the importance of maintaining a strong financial strategy.
Timely payments of principal and interest will commence on September 1, 2024, ensuring adherence to financial commitments. The successful management of these obligations will be vital for the project’s long-term viability and attractiveness to investors.
Development Timeline
Commencing in the post-2012-2013 period, the development of One Central HCM faced several interruptions before gaining momentum again in mid-2020. Initially, construction was delayed due to various challenges, resulting in a stalled timeline.
However, the project was reactivated, leading to significant advancements in the construction of the towers. In early 2021, a transition to Masterise Homes marked a rebranding effort, solidifying the project’s vision and management strategy.
Throughout this period, the project name underwent several changes, reflecting shifts in ownership and direction. As construction progressed, additional floors were incorporated into the design, enhancing the overall design profile of One Central HCM, which is strategically located in District 1 of Ho Chi Minh City.
Future Outlook
Looking ahead, One Central HCM is ready to emerge as a landmark development in Ho Chi Minh City, significantly influencing the local real estate environment.
With its strategic location and all-encompassing design, this project is ready to attract both domestic and international investments.
Key features that will enhance its significance include:
- Two iconic towers connected by a podium, showcasing modern architectural design.
- The west tower reaching 55 floors, designated for office and hotel space.
- The east tower comprising 48 floors, providing residential units and hotel facilities.
- An expected contribution to the local economy, enhancing urban living standards.
As One Central HCM progresses, it will undoubtedly serve as a catalyst for further development in the region, encouraging economic growth and urban change.
