The ability to pay principal and interest on 5 bonds worth VND 5,000 billion of Saigon Glory Company Limited (a subsidiary of Bitexco, hereinafter referred to as Saigon Glory) is a question mark. Because recently, Saigon Glory and related parties are negotiating the handling of secured assets to resolve the rights of bondholders.
Part of the assets securing the issuance of Saigon Glory is the future construction on the land of Tower A - the hotel and office components formed on the land of The Spirit of Saigon project.
The Spirit of Saigon project was expected to become a symbol, a new architectural highlight of Ho Chi Minh City. The project's location is extremely favorable, with 4 street frontages: Pham Ngu Lao - Calmette - Le Thi Hong Gam - Pho Duc Chinh (District 1), opposite Ben Thanh market.
This area can be considered the "diamond land" of Ho Chi Minh City with real estate transaction prices ranging from several hundred million to nearly a billion VND/m2.
The project design consists of two towers connected by a podium and arranged far apart. The west tower is 55 stories high, including office floors for rent in the lower half and a hotel in the upper half. The east tower is 48 stories high, including apartments with services provided by the hotel through a connection between the podium and the basement.
In 2013, Ho Chi Minh City approved Bitexco Group to invest in the above project with an area of 8,537m2. By 2017, the project was started.
However, the project was temporarily suspended during 2018-2019 and changed its legal entity from Bitexco Group (parent company) to Saigon Glory Company Limited (a 100% owned subsidiary of Bitexco Group).
In early 2021, the Masterise Homes nameplate suddenly appeared on the fence around the project site. Some analysis reports from securities companies and market research units said that the project's apartments could be opened for sale in 2021 at prices of over VND500 million/m2, among the most expensive in Ho Chi Minh City at that time.
In early 2022, the name Masterise Homes disappeared from the signboard and the project stopped construction. It was replaced by Viva Land (in the Van Thinh Phat Group ecosystem). At that time, Viva Land introduced this project in the development portfolio, with the new name Pearl.
By October 2022, the leaders of Van Thinh Phat Group were arrested and the project has been "inactive" since then. The Viva Land logo outside the fence surrounding the project has been completely removed.
According to the latest survey on November 7, the project is still recorded as being implemented by investor Saigon Glory.
Having passed through the hands of two "big guys" and finally returned to Saigon Glory, the project has been suspended for many months now. The construction site is fenced off from the outside, and the entrances are also sealed. Inside the project, construction materials are piled up haphazardly, with no one in sight.
Techcombank's recent announcement shows that the value of the project's collateral, Tower A, is valued lower than before.
Specifically, the value of the collateral assets, which are future real estate of Tower A (not yet completed), is revalued at VND 4,653 billion according to the Valuation Certificate dated August 30, 2023 of DPV Company Limited (the franchise partner using the brand of Colliers Real Estate Services and Investment Management Group in Vietnam).
Previously, the value of Tower A according to the Valuation Certificate of Indochina Valuation was 11,551 billion VND - the value of Tower A after construction was completed at December 31, 2024, assuming Saigon Glory had enough money to complete the project.
However, by September this year, in fact, Tower A was only building 4 rough floors (belonging to the tower block), Saigon Glory had stopped construction and had no specific plans to continue construction. At the same time, in the report on the evaluation of Saigon Glory's capital contribution value by DSC Securities Company, Saigon Glory's account did not have enough money for construction.
Techcombank proposes to auction the assets to pay the bondholders. If the proceeds from the disposal of the secured assets are still insufficient to pay the bond debt obligation, Saigon Glory is obliged to make further payments as prescribed in Article 307 of the Civil Code.
Saigon Glory has a written "appointment" to hand over the documents for handling the secured assets to the relevant parties before November 31. The company also said that it will coordinate and make efforts to promptly hand over and handle the secured assets in accordance with the provisions of the mortgage contracts and issued bond documents, ensuring full rights of the relevant parties, and complying with legal regulations.
The Spirit of Saigon project is located in the center of District 1, opposite Ben Thanh market (Photo: Coc Coc).
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