Ho Chi Minh City-based property developer Bitexco will forge an alliance with Dubai’s Emaar Properties PJSC to jointly develop a VND30.7 trillion ($1.37 billion) urban area located in the country’s southern city.
The partnership to form a joint venture (JV) was approved by the Ho Chi Minh City’s People’s Committee, said local media reports.
The total size of investment for the project covers the costs of building major infrastructure, and compensation for local residents while doing land clearance. The founding partners of the JV committed to ensure their own arrangement for raising the investment capital.
Emaar Properties is the developer of the world’s tallest building Burj Khalifa and world’s largest shopping mall Dubai Mall.
The 427-hectare development, initially named the Binh Quoi – Thanh Da Urban Area, is designed as a complex of both infrastructure, housing facilities and ecological parks. The JV is obliged to complete the project within 50 years since it is officially established.
Meanwhile, the investors plan to finish the project by 2030. Specifically, the first construction phase between 2016 and 2020 will focus on site clearance and several major engineering works. The next five years will see the completion of infrastructure and functional areas. Lastly, during the 2026-2030 period of the third phase, the JV will conclude the project.
Apart from being selected as the investor of this development, Bitexco has also proposed to build bridges linking the Binh Quoi – Thanh Da peninsula in Ho Chi Minh City. The company is known locally for a spate of realty projects, including the landmark Bitexco Financial Tower, The One skyscraper and the five-star Marriott Hotel Hanoi.
The Binh Quoi – Thanh Da project had been first agreed in 1992, but the Ho Chi Minh City has only managed to finish part of the site clearance in 2004, the Thanh Nien News reported. Bitexco and its Dubai partner will resume the project after the maiden investor, state-owned Saigon Construction Corporation, was pulled out in 2010 after a long delay.