Back Society » Development » Saigon's 'Ghost Tower' Seized as Collateral After Owners Fail to Repay Debt

Saigon's 'Ghost Tower' Seized as Collateral After Owners Fail to Repay Debt

The future of Saigon’s most prominent skeleton tower has become even murkier.

According to Vietnam’s State Bank, Tuoi Tre reports, the Vietnam Asset Management Company (VAMC) on Monday seized control of the unfinished Saigon One Tower in downtown District 1 as collateral over its investor’s debt.

Until this point, the building’s owners, including four real estate and investment companies, had amassed more than VND7 trillion (US$308 million) in debt.

A representative from the bank told the newspaper that after a long period of pressuring the investors to no avail, VAMC had to take over the building as the building's financiers could neither repay their debt nor come up with a feasible plan to do so in the future.

Back in April, many Saigoneers were excited by the news that work on the Saigon One Tower would continue under a new developer, Alpha King Real Estate Development JSC, while Singapore's RSP Architects Group would oversee the final designs.

However, it remains unclear if the unfinished structure will ever be completed after the State Bank became involved.

The Saigon One Tower broke ground in 2007 and was initially set to be completed in 2009. Of course, as is the way things are in Vietnam, only 80% of the building was ready by 2011 when the local housing market crashed. The towering structure has remained untouched ever since.

Related Articles:

Work Set to Resume on Saigon's Largest 'Ghost Tower'

The Story Behind Saigon’s ‘Death’ Projects

5 Buildings That Will Rise Above Saigon in 2016

Related Articles

in Development

After 2 Years, Da Nang May Abandon US$104m Government Building

It seems Vietnam’s sweltering weather has claimed yet another casualty: Da Nang's US$104 million administrative building.

in Development

As New Emission Standard Deadline Approaches, Vietnam May Not Be Ready

Even though Vietnam has already set a deadline to comply with European level 4 exhaust emission standards (Euro 4), whether the new legislation is feasible remains unclear.

in Development

Binh Duong to Build 'World Trade Center' With Link to Saigon Metro

Binh Duong has unveiled plans to construct a massive commercial complex in hopes of boosting the local economy and investment opportunities.

in Development

Chinese-Backed Projects in Vietnam Get Bad Rap for Poor Quality, Rampant Delays

The trial run for Hanoi’s inaugural railway has been cancelled by the Chinese building team, which further perpetuates the stereotype of troublesome Chinese construction projects in the country.

in Development

Cho Lon's Binh Tay Market May Be Getting a Makeover

Saigon city officials are mulling a VND122 billion (US$5.35 million) project to fully revamp Binh Tay, the 88-year-old market in the heart of District 6’s Chinatown.

in Development

Construction Begins on Overpasses to Ease Congestion Around Tan Son Nhat

In hopes of alleviating congestion in the area surrounding Tan Son Nhat International Airport, Saigon recently broke ground on two overpass projects in Go Vap District.

Partner Content