2 LARGE REAL ESTATE FIRMS COOPERATE TO IMPLEMENT PROJECT IN VUNG TAU WITH CAPITAL OF MORE THAN VND 4,000 BILLION

Accordingly, DIC Corp and Him Lam will cooperate to implement Northern Vung Tau New Urban Area project (DIC Solar City Vung Tau) with its total investment of VND 4,029 billion and is expected to be implemented in 11 years starting from QI/2015 to quarter Q4/2026.

Perspective drawing of DIC Solar City Vung Tau project

DIC Solar City Vung Tau project has an area of ​​90.5 hectares. Until now, DIC Corp has basically completed legal procedures, is adjusting the detailed construction planning of the scale of 1/500. Currently, the company has compensated for the ground clearance of 7.2 ha/90.5 ha, and continue to implement the compensation agreement with the households.

Accordingly, the two parties will contribute capital to establish a two-member limited liability company with an expected charter capital of VND 1,700 billion. Initially, the new legal charter capital was VND 700 billion, then increased by VND 1,000 billion to VND 1,700 billion.

In terms of proportion, DIC Corp owns 65% of charter capital and Him Lam owns 35%. Him Lam does not participate in investment issues related to the project and gives full authority for DIC Corp to make investment decisions. However, the benefits will have to be divided according to the proportion of capital contribution. The project is expected to gain revenue from 2021-2026. In particular, it is expected that sales will start in the second quarter of 2021.

In the first phase, DIC Corp will contribute VND 455 billion including cash, project development rights and cost of implemented works in this project. Him Lam will contribute VND 245 billion in cash to carry out the site clearance work in Zone C right this year.

Perspective drawing of DIC Solar City Vung Tau project.

The deadline for completing the consultation is before September 30th 2020.

It is known that the on 1/500-scale planning of DIC Solar City Vung Tau was approved by the People's Committee of Ba Ria - Vung Tau province on 31st October 2012.

In August 2017, the People's Committee of this province approved DIC Corp to invest in this project with an area of ​​90 hectares located in Ward 12 Vung Tau city. Total investment of the project is VND 4,029 billion and the implementation time is expected to be 11 years starting from Q1/2015 and completed in Q4/2026.

In 2019, DIC Corp has agreed to compensate and implement site clearance for the project at a cost of nearly VND69 billion, equivalent to 23% of the plan for investment and development capital for the project.