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Tan Hoang Minh proposes cancelling contract for land lot in Thu Thiem

The Saigon Times

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HCMC – Tan Hoang Minh Group, whose subsidiary Viet Star Real Estate Investment Co., Ltd won the auction for the land lot coded 3-12 in the Thu Thiem New Urban Area in HCMC’s Thu Duc City on December 10 last year, has proposed cancelling a contract to buy the land lot.

Tan Hoang Minh chairman and general director Do Anh Dung on January 10 wrote to Party General Secretary Nguyen Phu Trong and leaders of the State and HCMC, saying that the firm would accept all sanctions for its unilateral contract cancellation.

Dung added the move was aimed at ensuring the stability of the local real estate market as the auctions of land lots in the Thu Thiem New Urban Area might lead to negative impacts on the market. The firm agreed with Minister of Finance Ho Duc Phoc’s opinion made on January 4 that the price of VND2.4 billion per square meter of land in Thu Thiem was abnormally high.

The auctions might cause chaos in the property sector and the entire economy, Dung wrote.

After winning the auction, the group has changed its investment, business and finance plans to pay for the land lot in line with the progress and requirements stated in the contract signed with the HCMC Land Fund Development Center and the municipal Property Auction Service Center.

It has also worked out a new investment and business plan for the land lot.

He explained his decision to buy the land lot at a high price that he wanted to contribute to the city’s recovery after the pandemic and develop an outstanding project, contributing to improving the urban architecture in the Thu Thiem Peninsula.

At the auction, Tan Hoang Minh set the final price for the land lot at VND24.5 trillion, which was higher than the bid by CapitalLand One Financial, a foreign firm, by VND700 billion to win the auction. The auction winning price was 8.3 times higher than the starting price and was the highest ever in the local market.

Under the prevailing regulations, if Tan Hoang Minh successfully cancels the contract to buy the land lot, it will lose its deposit of nearly VND600 billion. The firm that set the second highest price for the land lot can have the right to buy it.

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