Lotte to place land fee deposit for huge project

HCMC – South Korea’s Lotte Group has agreed to place a deposit totaling around VND2 trillion for a land use fee for six lots in Thu Thiem New Urban Area to develop a huge property project.

The deposit will make it highly possible for the Korean company and its Japanese partners to be chosen to develop the Eco Smart City project worth over US$2.1 billion in Thu Thiem.

According to the city government, the city would use the deposit to service bank loans totaling VND29 trillion which have been spent on infrastructure development in the Thu Thiem New Urban Area since the daily interest payment is VND2.9 billion at the moment.

The Korean firm has expressed interest in investing in Functional Area 2A, the core part of the new urban area in District 2 since 2009.

The city has sought the Prime Minister’s approval to select the joint venture involving some of Lotte’s affiliates and Japanese firms to implement the project. The joint venture consists of Lotte Asset Development Co. Ltd., Lotte Shopping Co. Ltd., Hotel Lotte Co. Ltd., Lotte Engineering & Construction Co. Ltd. and Japanese firms Mitsubishi Corporation, Mitsubishi Estate Co. Ltd. and Toshiba Corporation,

The city wants the selection process to be completed quickly to help attract more investors to develop a major finance, banking, trade and service center in the core part of the new town in line with a master zoning plan.

Functional Area 2A has a total area of about 16.71 hectares, including 12.55 hectares with 12 lots for projects. With an investment of nearly US$2.2 billion, Functional Area 2A will be developed into a complex comprising an international trade-finance-banking center, hotels, serviced apartments, offices, multifunctional condos and educational buildings.

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