Tan Hoang Minh: the most ”Play-Game” developer in Vietnam?
Opening with a Price Dominance to Capture All Public Attention
On December 10, Ngoi Sao Viet Real Estate Investment Co., Ltd – a member of Tan Hoang Minh Group won the auction of a land lot marked 3-12 with an area of more than 10,000m2 in Thu Thiem New Urban Area at a surprising high price. The record is 24,500 billion VND, 8.3 times higher than the starting price of 2,942 billion VND.
This information reminds the public of Tan Hoang Minh’s journey to acquire the “golden land” at 23 Le Duan (Ben Nghe Ward, District 1, Ho Chi Minh City) in 2016 with a similar scenario.
No. 23 Le Duan, which used to be the headquarters of the Ho Chi Minh City Lottery Company, is 3,000m2 big with two fronts of Le Duan and Nguyen Du streets, located in the city center.
In 2011, the Lottery Company started construction of a new headquarters in District 5, so it planned to hand over the old headquarters at 23 Le Duan to the HCMC People’s Committee to use it for other purposes according to the development plan, common development in the future.
In early 2014, the Department of Planning and Investment proposed to the HCMC People’s Committee to auction the land at 23 Le Duan in the form of land lease by the State because the land has the function of commercial offices, allows foreign legal entities to participate.
With such a prime location, the land has received a lot of attention from domestic and foreign businesses, including a large Japanese corporation that expressed its desire to invest in a project of international standard office building.
By June 2015, the public auction officially took place with the starting price of 558 billion VND, of which the value of architectural works is about 10 billion VND, the value of land use rights is 548 billion VND.
Businesses registering to participate in the auction must put down in advance an amount equivalent to 15% of the starting price (about VND 84 billion). After 16 rounds, Tan Hoang Minh Group overcame 12 other “rivals” to win the auction of the land with a record amount at that time, up to 1,430 billion VND, 2.6 times higher than the starting price.
Project information board at 23 Le Duan is developed by Techcombank
When the HCMC People’s Committee had just issued a decision approving the winning result of the auction of 23 Le Duan, Tan Hoang Minh suddenly demanded to cancel the result because it thought the auction organizer had made a mistake on the price step. Not long after, this business asked to continue to buy the above land.
Around mid-2016, Trung Nam Group (Developer of the 10,000 billion VND anti-flood project) proposed the city to add 23 Le Duan to the list of land plots exchanged for BT (build – transfer) contracts that this company is the developer.
The HCMC People’s Committee issued an “ultimatum” requesting by the end of December 30, 2016, if Tan Hoang Minh did not pay all of the winning amount, the city would cancel the result to organize the auction again.
At the last minute, Tan Hoang Minh rushed to fulfill the financial obligation of about VND 1,694 billion (including the advance deposit of VND 84 billion, the remaining amount of more than VND 1,346 billion and a fine for late payment of VND 263 billion), officially owned the “golden land” 23 Le Duan around April 2017.
Techcombank’s Land or Tan Hoang Minh’s “Deposit Transfer Game” Success?
As noted by the reporter on the afternoon of December 11, the land at 23 Le Duan is the construction work of Techcombank Sai Gon Tower project. Currently, the building of more than 20 floors is entering the completion phase and is expected to be completed in 2021.
The information related to Tan Hoang Minh that was attached to the fence of the building has been completely dismantled. Inside, construction materials are quite scattered, a few workers are working on the floor of the building.
Some workers are working inside Techcombank Sai Gon Tower
The information board of the project shows that the developer is Techcombank, constructed by contractor Newtecons under the construction permit No. 11/GPXD issued by the Department of Construction of Ho Chi Minh City on January 13, 2020.
The developer once revealed that the project has a total investment of about 1,430 billion VND, nearly equal to the winning amount at the auction of Tan Hoang Minh Group. Thus, by many tricks of delay, Tan Hoang Minh has extended the payment schedule to the HCMC People’s Committee for almost 2 years, from 6/2015 to 4/2017, raising suspicions in public that this is a sophisticated deposit transfer method of Tan Hoang Minh, when:
- Closing the price extremely high, a record in the auction to capture the opportunity
- Delay paying the rest to prolong the time, taking advantage of the loopholes in the payment schedule and late payment penalty interest, in order to prolong the payment as long as possible, in the case of 23 Le Duan, almost 2 years, to achieve own benefits and more time searching for the right buyer
Up to now, both Tan Hoang Minh and Techcombank have not had any official information about this transfer, but from the fact it can be seen the land at 23 Le Duan belongs to Techcombank.
Back with 4 land lots in Thu Thiem New Urban Area just completed auction with a total value of more than 37,000 billion VND. According to regulations, by mid-March 2022, all four winning businesses must pay the above amount.
If payment is not received by the due date, a fine for late payment will be imposed. If the winning business fails to pay the full amount to buy the property, the HCMC People’s Committee cancels the decision to recognize the auction winning result. The paid amount will be remitted into the State budget.
Currently, the project development plan of Tan Hoang Minh (and the winning businesses) is still a mystery!
Tan Hoang Minh Wants to Build Thien Bao Phu Quoc, a Spiritual Project in Phu Quoc
Along with the sleepless tourist complex that started construction at the end of 2021, Tan Hoang Minh Group wants to pour 3,000 billion VND to build a spiritual project nearby.
Tan Hoang Minh Group said it has sent official letters to the Provincial Party Committee, the People’s Committee of Kien Giang province and the leaders of Phu Quoc City to propose the policy of implementing the spiritual project. After being approved, the business will continue to propose to the Vietnam Buddhist Sangha, relevant ministries and agencies and the Government to apply for a license to deploy.
According to the developer’s idea, the spiritual area will have a statue of Bodhisattva Avalokitesvara with his back leaning against the mountain, facing the East Sea, cast in pure copper and inlaid with 24 karat Italian gold, 189m high, excluding the stand). With this size, the statue has a height equivalent to a 54-story building.
Overall perspective of Thien Bao Phu Quoc project of Tan Hoang Minh Group. Photo: Tan Hoang Minh
In addition to the sleepless tourist complex, which started construction at Bai Truong, the statue of Bodhisattva Avalokitesvara promises to help the pearl island attract a variety of domestic and international tourists, contributing to the growth of Phu Quoc Island City.
After being approved, Tan Hoang Minh plans to build and complete the project within 18-24 months, to put it into service for tourists and domestic and international Buddhist followers.
In Business, Trust is the Most Important
It is not clear where Tan Hoang Minh’s spiritual project in Phu Quoc will go, but in terms of being a trustful human being, especially as a businessman with great influence and also a developer, the actions of Tan Hoang Minh shows unclearness and worries. Because of the auction, there are signs of abnormality or even an incomplete reputation of Tan Hoang Minh really creates a big minus point for investors when participating in the project developed by this entity.
In my personal opinion, as an expert in the field of Real Estate, if there is an opportunity to invest in Tan Hoang Minh’s project, I will definitely refuse because the trustworthiness of this developer is too low and surely cannot recommend this developer’s project to any client because the risk is too high from the unclear working habits.
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