There are many reasons that make the affair become the hot topic of the discussions. The buyer and the seller in the affair both are well known: Daewoo the seller, is a big South Korean conglomerate, while the buyer – Hanel – is a big electronics group in Vietnam. The affair is considered an impressive deal of the year 2012 also because the product for sale and purchase is Daeha Business Center (which is simply called Daewoo hotel by Hanoians), which is now located on the golden land area of Hanoi.
The history of the project
In fact, the leaders of the South Korean Daewoo Group, the investor of the project, did not choose the land plot from the beginning. In 1992, Daewoo’s managers, who accompanied South Korean leaders in their visit to Vietnam when Vietnam and the Republic of Korea established diplomatic relation, decided that Daewoo would build a high grade hotel in a land plot in Ba Dinh district – the political center of Hanoi and Vietnam.
Of course, the proposal was refused, but Vietnam offered another land plot, which was then a rau muong (a popular kind of vegetable) pond, while the area looked rustic.
Daewoo was suggested to team up with a Vietnamese partner to develop the project. And Hanel was the choice, which then contributed 30 percent of the total investment capital in the land use right.
Daeha Business Center, which comprises Daewoo Hotel, rose after the great efforts by the investors. Kim Woo Chung, the then leader of Daewoo Group, then decided to give support to upgrade Dao Tan Road to help upgrade the traffic and create good scenery for the project.
Daewoo cherished an ambitious plan to develop a series of high rise buildings in the area. Some years later, a land plot in front of the business complex was allocated to Daewoo.
A high ranking official of the Ministry of Planning and Investment said that allocating the land plot to Daewoo was a “good deep” of the Vietnamese government to recognize the contribution of Daewoo to Vietnam’s economy.
However, many unpredictable things occurred later. Kim Woo Chung turned into a crime from a hero. Like many other hotel projects, Daewoo incurred losses for many consecutive years. The land plot next to Daewoo Hotel has change hands many times. It has fallen into the hands of Lotte, which plans to develop a 65 storey complex.
Why Hanel?
When hearing that Daewoo wants to sell its stakes in the project, a lot of investors, especially South Korean ones, have expressed their will to become the new owner of the project. Meanwhile, Hanel was not an impressive name, even if comparing with domestic investors.
However, a provision of the investment license stipulates that in case one of the parties in the joint ventures wants to transfer stakes, the other partners get the priority to take over the stakes.
It is clear that the value of the complex is very big. Unlike 1992, the area has become the golden land of Hanoi. People even believe that the central area of Hanoi should be now situated there.
With the total area of three hectares, the land use right of the complex alone is very valuable. Besides, the complex has other “intangible values”: it is among the top 10 5-star hotels in Hanoi, which received well-known leaders in the world, namely the US President Clinton, Russian President Putin and Chinese President Hu Jin Tao.
No official figure about the value of the affair has been revealed. Some sources said that the affair was valued at 100 million dollars. Meanwhile, other sources said Daewoo got 66 million dollars only.
Source: TBKTVN
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment