| With the economy of Vietnam growing in an
accelerating pace, especially after the joining of WTO, we
expect that the demand for residential apartments will
increase along with the growth of a pool of young middle
class. In addition, economic growth has also
sped up the process of urbanization, which results in a flock
of rural population moving towards the major cities. This is especially notable in Hochiminh City as it is the
major economic and commercial center of Vietnam, a country
with the highest proportion of young population.
Seeing the trend and adding with the support
of a stable cashflow from Saigon Trade Center and cement
business, the Group has also invested into the residential
property market in Hochiminh City, Vietnam.
On November 2006, the Group has announced the
signing of a cooperation agreement with Thanh Phat, a local
company in Vietnam owning a land area of approximately
22,000sqm in Binh Chanh District of Hochiminh City. The
cooperation will be in the form of setting up a joint venture
company upon Thanh Phat having completed all procedure of
applications to the government for the development of the
Project on the land. According to the agreement, Thanh Phat
will contribute the land with a valuation of US$6,000,000 and
owns 30% of the Joint Venture Company, whereas Luks will
contribute US$14,000,000 as construction cost and owns 70% of
the JVC. The preliminary plan of the Project includes 6-8
blocks of residential apartments, each with 16 floors, for
total areas of 115,000sqm. The schedule of development is from
the 3rd quarter 2007 (commencement of construction) to its
completion on the 3rd of 2010.
On January 2007, the Group has announced
another memorandum of understanding for an intended
cooperation with Hong Phuc, a local Vietnamese company owning
a land in District 2 of Hochiminh City, to develop a
residential project. The cooperation is also in the form of
joint venture. The land, valued at US$9,500,000 will be
injected into the joint venture company. The Group will own
90% of the JVC. The initial plan of the Project includes
73,000sqm of areas for construction of apartments. The
commencement of construction is expected to be on the 3rd
quarter of 2007 and will be completed within 2 years.
The Group is further exploring good
opportunities for residential or commercial development in
Hochiminh City.
The Group has its experience in property
development dating back to 1991 in the China market. Property
projects having been developed by the Group including Shenzhen
Lo Wu Commerical City and Shenzhen Jinfeng City and several
residential estates in Chengdu.
 |
Ceremony for granting of the Investment
Certificate by the Vietnamese Government to the Group's
new Joint Venture Company in regards to the Real Estate
Project with a GFA of 560,000 sq.m in Hochiminh City
(from Left : Mr. Nguyen Trung Tin (Vice Chairman of the
People's Committee of HCM City), Mr.Dang Tan Thanh
(Director of VLA, the local partner) and Mr. Luk King
Tin (Chairman of the Group)" Hochiminh City, dated 2
February 2009 |
 |
|
