Bitexco divests from Ben Thanh Quadrangle project
Tan Viet Securities Joint Stock Company (TVSI) has just sent a notice to bondholders about the plan to transfer capital contributions, proposed by Bitexco Group LLC and Hanoi Phuong Dong Real Estate LLC and agreed by Saigon Glory LLC.
According to the plan agreed upon by the parties, Bitexco Group LLC will transfer 100% of its capital contribution at Saigon Glory LLC to Hanoi Phuong Dong Real Estate LLC. This transfer will not affect or change the rights of Saigon Glory bondholders.
Bitexco Group commits to continue to fulfill its obligation to pay principal and interest of 10 Saigon Glory bond lots from September 1, 2024 to the end of the period on June 12, 2025 and the interest amount of the period on June 18, 2025.
Previously, Bitexco’s entire capital contribution in Saigon Glory was mortgaged to Techcombank as collateral for 10 bonds worth VND10,000 billion, issued by Saigon Glory. These bonds will mature from June 2025 to November 2026. According to the announcement, the transfer does not pose any risks to bondholders.
Saigon Glory is a subsidiary of Bitexco Group established in June 2018. This company is the investor of The Spirit of Saigon project - a large-scale complex project located in the Ben Thanh quadrangle, opposite Ben Thanh market (District 1, Ho Chi Minh City, also known as the Ben Thanh quadrangle project).
The project scale includes two towers of 46 and 55 floors, including 214 luxury apartments and 250 hotel rooms meeting 6-star standards with a total expected investment of up to 14,400 billion VND.
The "turbulent" fate of the Ben Thanh Quadrangle super project
As a large-scale project, located in a prime location in Ho Chi Minh City, the fate of the Ben Thanh Quadrangle project is quite "unstable". After completing the foundation in 2012-2013, the project temporarily stopped construction.
By 2020, through 10 bond issuances, Saigon Glory successfully mobilized 10,000 billion VND, the main collateral being The Spirit of Saigon project. Also in this year, the project was restarted and the tower floors were gradually completed with additional capital from the 10 bond lots mentioned above.
By early 2021, Saigon Glory Company Limited announced a change in its business registration, in which Bitexco Group was no longer the parent company. The shareholder structure was not disclosed, but the three people authorized to represent 100% of Saigon Glory's capital at this time were Mr. Vu Quang Bao with VND 2,100 billion, equivalent to 30% (Mr. Bao is the General Director of Bitexco Group and also Chairman of the Board of Directors of Saigon Spirit), Mr. Trinh Quang Cong with VND 2,800 billion, equivalent to 40% (General Director) and Mr. Nguyen Anh Duc with VND 2,100 billion, equivalent to 30% (member of the Board of Directors).
At the same time, the project was introduced by Masterise Homes with a new name One Central HCM. The project continued to build a few more floors, but by June 2022, the project was temporarily suspended.
In August 2022, Viva Land replaced Masterise Homes, at which time the project was renamed The Pearl. However, by the end of 2022, the project continued to stop construction and has been "shelved" since then.
Who is the new owner?
By receiving 100% of the capital contribution at Saigon Glory Company Limited from Bitexco, Hanoi Phuong Dong Real Estate Company Limited officially owns the above-mentioned "golden" Ben Thanh Quadrangle project.
According to research, Phuong Dong Ha Noi Company was established on May 23, 2011, with its head office located on the 10th floor of Pacific Place Building, 83 Ly Thuong Kiet, Hanoi. At the time of its establishment, the company had a charter capital of more than 517 billion VND, in which Phuong Dong Real Estate Investment and Trading Company Limited and Mr. Pham Quoc Nhat each owned 50% of the capital. The legal representative/General Director of the Company is Mr. Pham Quoc Nhat (born in 1966).
In March 2024, Phuong Dong Real Estate Investment and Trading Company Limited transferred all capital to Eastern Real Investment Company Limited. Then, in April 2024, Mr. Pham Quoc Nhat also sold more than 41% of shares to an individual, Ms. Tran Thi Minh Hieu, whose legal representative was also changed to Ms. Tran Thi Minh Hieu.
New shareholder, Eastern Real Investment Company Limited, established on January 9, 2024, headquartered at 42 Ngo Quang Huy Building, Thao Dien Ward, Thu Duc City, Ho Chi Minh City, main business line is real estate trading.
As of August 13, 2024, the company's charter capital is VND 2,272 billion, and Ms. Vu Thi Phuong Thu (1984) - the legal representative contributed 99.999% of the capital. Notably, Ms. Vu Thi Phuong Thu is currently the representative and General Director of Phuong Dong Real Estate Investment and Trading Company Limited - the enterprise that transferred its capital contribution at Phuong Dong Hanoi Real Estate Company Limited to Eastern Real Estate Investment.
As of June 2024, Phuong Dong Real Estate Investment and Trading Company Limited has a charter capital of VND 2,811 billion.
