Phat Dat borrowed more than 8,800 billion VND to invest in ‘super project’ Thu Thiem

In the Board of Directors resolution announced on the afternoon of June 29, Phat Dat Real Estate Development Joint Stock Company said there will be two 96-month loan packages from Military Bank (MB).

The first package is more than 6,100 billion VND for Phat Dat to receive the transfer of 35% of capital contribution at Lotte HCMC – the investor of the Lotte Eco Smart City project. The second package is nearly 2,730 billion VND to finance additional capital contribution costs when Lotte HCMC raises its charter capital to 12,000 billion VND.

Last weekend, Phat Dat and Lotte announced cooperation to develop this project with a total investment capital of about 60,000 billion VND, an increase of nearly 40,000 billion VND compared to the capital of more than 20,100 billion VND announced when the project was previously licensed.

According to the cooperation agreement, Phat Dat will participate in the project with a 35% ownership rate, co-developing the housing component at lots 2-2, 2-4 and 2-6. This enterprise also develops two commercial building blocks at lots 2-1 and 2-3 along with a commercial – service podium and basement system.

Talk to VnExpress After signing the cooperation, Phat Dat representative said he had “approached the capital problem in a disciplined and structured way from the beginning”. In addition to being funded by MB to participate in the project, the enterprise also prepares financial resources from restructuring the project portfolio. Accordingly, businesses proactively divest capital from assets that are no longer in their priority strategy to focus on high-value assets in Ho Chi Minh City’s urban core.

Phat Dat’s management board said that participating in large-scale projects does not disrupt existing projects, because resources are reallocated from asset divestment, not withdrawn from ongoing projects.

According to the first quarter financial report of this year, Phat Dat owes more than 14,000 billion VND, of which loans are more than 4,400 billion VND.

Lotte Eco Smart City is located in functional area No. 2A, now in An Khanh ward, Ho Chi Minh City, with an area of ​​about 7.54 hectares. The project includes 6 plots of land from 2-1 to 2-6, located in the central core of Thu Thiem New Urban Area, next to the central square and central lake.

The project was researched in 1997 and the People’s Committee of Ho Chi Minh City signed an investment contract with Lotte in 2017. According to the original plan, the project includes 11 towers with a maximum height of 50 floors, developing into a multi-functional complex including a financial, commercial, service center, office, accommodation, housing and public space according to international standards.