More debt related to Tan Hoang Minh headquarters put up for sale

Agribank Trang An Branch (Agribank Trang An) has just announced the auction of customer debts at this branch.

The debt as of December 31, 2023 is VND 84,757 billion (of which the principal balance is VND 71.52 billion, interest payable is VND 13,237 billion).

The collateral for the above debt is the property rights arising from the long-term and irrevocable lease contract of the office building and headquarters of the National Political Publishing House - Truth, No. 24 Quang Trung, Tran Hung Dao Ward, Hoan Kiem District, Hanoi of Tan Hoang Minh Hotel Service Trading Company Limited (Tan Hoang Minh Group).

According to the description, this office building is built on a land area of 1,470.3m2; construction area of 941.31m2; total construction floor area of 10,833.9m2. The building has 7 floors with a total area of 6,858.6m2 and 3 basements with a total area of 3,975.3m2, providing 70 car parking spaces and 296 motorbike parking spaces.

*Building 24 Quang Trung, Hoan Kiem, Hanoi.*

The bank did not disclose the customer's identity, however, Tan Hoang Minh Group previously used the lease contract at 24 Quang Trung as collateral for loans from many legal entities in the group's ecosystem.

Since the beginning of 2023, Agribank Trang An has been selling a series of assets and debts related to Tan Hoang Minh Group and companies in the ecosystem.

Many of these loans are secured by property rights arising from long-term and irrevocable lease contracts for the office building and headquarters of the National Political Publishing House - Truth, 24 Quang Trung (also the headquarters of Tan Hoang Minh).

Most recently, in mid-October 2023, this branch announced the auction of bad debt worth nearly VND 88.54 billion of Bac Ha Development Investment Company Limited (Bac Ha Company) according to the credit contract signed on December 8, 2020. Of which, VND 79 billion is principal debt and more than VND 9.5 billion is interest.

Previously, at the end of September, the bank also put up for sale another debt of this company with a book value of VND55.4 billion. The debt is also secured by a third-party mortgage, which is a property right arising from a long-term and irrevocable lease contract of the office building and headquarters of the National Political Publishing House, Truth, No. 24 Quang Trung, Hoan Kiem District, Hanoi with Tan Hoang Minh.

Building No. 24 Quang Trung has been rented by Tan Hoang Minh as its headquarters since the end of 2017 under a long-term, non-cancellable lease contract, valid until November 2058, between Tan Hoang Minh and Vietnam Infrastructure and Real Estate JSC (VIID).

Tan Hoang Minh has used the property rights arising from the headquarters lease contract alone as collateral for at least 5 companies in the ecosystem to borrow capital with a total outstanding debt of about 300 billion VND.

Building 24 Quang Trung is being used by LPBank as the headquarters of Quang Trung Branch, after the bank opened a new branch headquarters on January 18, 2024.

In addition to the above building lease contract, Tan Hoang Minh also mortgaged the resort real estate project in Phu Quoc for loans at Agribank Trang An.

According to incomplete statistics, Tan Hoang Minh currently has debts worth approximately VND1,000 billion (provisional value) at this branch. These debts have been announced by Agribank for auction many times but have not found a buyer.

Source