What does the Department of Construction say about the owner of Cocobay Da Nang unilaterally terminating the contract?

Recently, Thanh Do Investment Development and Construction Joint Stock Company, the investor of The Empire Resort and Luxury Housing project, also known as Cocobay Da Nang, has issued a notice of unilateral termination of contracts with customers at the project.

According to this announcement, the company is in the process of restructuring and preparing resources to launch The Empire project in the second quarter of 2024. Therefore, the extension of sales contracts with customers in the past is undesirable.

Real Estate - What does the Department of Construction say about the investor Cocobay Da Nang unilaterally terminating the contract with the customer? — Notice of unilateral termination of contract with customers at The Empire Luxury Resort and Residences project, also known as Cocobay Da Nang.

The company stated that after the company unilaterally terminates the sales contract, the customer will hand over all legal documents related to the real estate and the current status of the property received according to the handover minutes to the company within 15 days from the date of receipt of the notice as well as coordinate to liquidate the sales contract.

Regarding this issue, on March 20, Mr. Le Van Tuan, Deputy Director of the Department of Construction of Da Nang City, said that up to now, the department has not received any notice from Thanh Do Investment, Development and Construction Joint Stock Company, regarding the unilateral termination of the contract with customers at this project.

According to Mr. Tuan, the Department of Construction has allowed the investor to sell future housing for this project. On that basis, the investor has signed contracts to buy and sell future housing for individual customers.

Real Estate - What does the Department of Construction say about the investor of Cocobay Da Nang unilaterally terminating the contract with the customer? (Image 2). — Mr. Le Van Tuan, Deputy Director of the Department of Construction of Da Nang city.

According to regulations, investors must report on implementation results every quarter. However, at present, the Department of Construction has not received any reports from investors on this matter.

“The contract has a civil meaning between two parties. The dispute over this contract is between the investor and the related customer. In case there are contents related to the role of state management, the Department of Construction will participate,” Mr. Tuan added.

Cocobay Da Nang project includes 2 subdivisions: Q1 with an area of 300,797m2 and Q2 with an area of 212,529m2.

These two subdivisions have been approved for detailed planning by the People's Committee of Da Nang City and the project has been partially implemented and put into use.

Regarding the Q1 subdivision, according to Decision No. 593 dated February 1, 2019 of the City People's Committee approving the adjustment of the detailed planning with the main content being to convert 50% of the hotel apartment buildings (not forming residential units) under construction in clusters HH2, HH3, HH5 into apartment buildings (forming residential units).

For high-rise hotel apartment buildings that have not been built in clusters HH4, HH6, HH7, they will be converted into apartments, villas, semi-detached villas, and townhouses. Particularly, the height of high-rise building HH1 will be reduced from 50 floors to 40 floors, 50% of which will be converted into apartments.

In 2022, the investor proposed to adjust the HH2 and HH3 areas, by completely converting the HH2 area into apartment buildings and the HH3 area into hotel apartments (condotel).

After that, the Department of Construction instructed the investor to carry out the relevant procedures. However, from 2022 to now, the investor has not carried out the relevant procedures.

This project started in June 2016 in the coastal area of Truong Sa Street, Hoa Hai Ward, Ngu Hanh Son District, Da Nang City.

The project has a total investment of 11,000 billion VND, built on an area of about 31 hectares.

This will be a tourism and entertainment complex with many items such as indoor performance stage, outdoor performance stage, tourist square, walking street with condotel accommodation system and boutique hotel.

This project has been partially completed, including hotel apartments (condotel) and many other entertainment and resort items. Put into operation since 2017, by 2019 the super project "broke down" in the condotel segment after the announcement of ending the payment of committed profits of up to 12%/year as signed with customers.

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