After the first auction took place less than 2 months, BIDV Bank reduced the price of more than 800 billion VND of the debt of Tai Nguyen Company - the investor of Kenton Node project.
Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV) and Minh Phap Auction Company recently organized the fourth auction of the debt of Tai Nguyen Construction Production and Trade Company Limited (Tai Nguyen Company) with a starting price of VND 4,904 billion.
Compared to the first auction held on August 19, the starting price this time has decreased by more than 800 billion VND. The auction results have not been announced yet.
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| The price recently auctioned is only 85% of the total outstanding debt value of Tai Nguyen Company at BIDV Bank. Photo: Le Toan |
The total outstanding debt of Tai Nguyen Company as of July 26 was more than 5,720 billion VND, including principal debt of 2,506 billion VND and interest debt of 3,214 billion VND. Thus, the price recently auctioned was only 85% of the total outstanding debt value.
This debt was formed by 8 credit contracts from January 2005 to July 2020. Accordingly, interest will continue to accrue from July 27, 2024 until the customer fully repays the loan principal at the bank.
The assets securing the debt include the Land Use Rights and assets attached to the land formed in the future of the Phuoc Nguyen Hung Residential Area Project (now the Kenton Project), Phuoc Kien Commune, Nha Be District, Ho Chi Minh City and the Property Rights on stone mining in Hoa Thach and Phu Man Communes, Quoc Oai District, Hanoi City.
In 2022, BIDV sued Tai Nguyen Company at the People's Court of District 1, Ho Chi Minh City regarding a credit contract dispute. The bank paid an advance payment of court fees and charges of nearly VND 2.4 billion. However, the Court later decided to temporarily suspend the settlement of the civil case.
The Kenton Node project, formerly known as The Kenton Residences, is located on Nguyen Huu Tho Street (Phuoc Kien Commune, Nha Be District), invested by Tai Nguyen Company. The project started construction in 2009, including 3 subdivisions: Plaza, Sky Villa and Residences, with 9 buildings with 1,640 apartments.
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| The Kenton Node project remains motionless even though most of the buildings have been roughly built and partially finished on the outside. Photo: Le Toan |
At that time, the total investment capital for this project was announced to be 300 million USD, with the expected handover of houses in 2011. However, by mid-2010, the real estate market froze, causing the project to stagnate.
In May 2017, after being suspended for more than 7 years, the project was renamed Kenton Node, announced to have a total capital of more than 1 billion USD with many construction items such as a complex of apartments, accommodation apartments, hotels, shopping centers, entertainment and food service centers, performance theaters, schools, and international clinics.
Of which, the hotel is 5-star standard with 288 rooms; the condotel area has 586 units; the apartment area has 1,683 units. In addition, the water music show, with a production cost of up to 3 million USD, is one of the amenities that the investor has been promoting loudly for the project's rebirth.
However, after only half a year of starting, the project once again remained inactive even though most of the buildings had been roughly built and partially completed on the outside.
In February 2022, Novaland announced that it would take over Kenton Note to renew the project and rename it Grand Sentosa. However, the new developer later fell into crisis, and Kenton Note once again lay dormant.
Source: https://baodautu.vn/batdongsan/bidv-dai-ha-gia-khoan-no-cua-chu-dau-tu-du-an-kenton-node-d226841.html
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