Indochina Land Holdings Fund on July 21 signed an agreement in principle to invest US$60 million in a deluxe sea resort in Danang City in the Central Part of Vietnam.
Mr. Peter R. Ryder, Chairman of the Directors Board of the Indochina Land Holdings Fund, signed the deal with the Mayor of Danang City Tran Van Minh regarding the construction of the a 20-ha sea resort along the seashore road Son Tra-Dien Ngoc in Hoa Hai Ward, Nguy Hanh Son District, adjacent to Vegas Tourist Site. The total investment capital for this project is US$60 million and the total land rental is US$0.9 a square metre a year, or US$9 million in 50 years.
Within 30 days after the signature, Indochina Land Holdings has to deposit US$1 million for Danang City. After the investment license is granted, this sum of money will be treated as the land rental. After the land site was cleared and compensated, the investor will continue paying US$3.5 million to the city. The remaining US$4.5 million will be paid annually in 10 years.
The in-principle agreement also clearly specifies that the investor must finish applications for the project licensing within 6 months after the deal was signed. Within six months after licensing and cleared land transfer, the investor must kick off the project. Within 24-36 months after the land transfer, Indochina Land Holdings must complete the construction and put the project into operation. If any of the deadlines is violated, the investor will lose the US$1 million deposit.
In turn, within three months after Indochina Land Holdings receives the investment licence, construction licence and land-leasing contract, Danang City must finish the site compensation, the site clearance and the land transfer to the investor. If any of the deadlines is violated, Danang will be fined a 1 per cent interest rate a month on the deposited money.
Indochina Land Holdings is also the investor of the luxury Indochina Riverside Tower complex with a total investment capital of
US$27 million at 74 Bach Dang Street, Danang City, which was commenced construction in June.
Hence, in nearly two months, Danang has seen three seaside tourism projects with a combined investment capital of US4290 million. Vinacapital Group invests
US$150 million in the Hoa Hai Tourism Resort and Golf Course. The Ministry of Planning and Investment licensed the
US$86 million international tourism and entertainment complex Silver Shores-Hoang Dat on June 21 and the last one is the Indochina Land Holdings’ project.
Hai Chau
Vietnamese
