After years of land clearance delays, lack of investors and stagnation in the real estate market, the Thu Thiem new urban area project may gaining steam as Bitexco has been assigned to manage the project.
Bitexco, which has successful completed landmark projects such as The Manor and the Bitexco Tower, has been tapped to manage the massive $3 billion project that would completely transform District 2 (or, as it may be referred to in the future, the East City).
The hope is that Bitexco’s management will end the almost 20-year log-jam in development in the area.
There have been plans to redevelop the area, which covers more than 426 hectares, into a cultural sport and tourism center as far back as in 1992 in its current form (there were plans for a similar project in the early 1970s that fell through for obvious reasons).
In 2000, planning for the project began in earnest and in 2004, the HCMC People’s Committee assigned the project to the Saigon Construction Corporation. However, in 2007, the city decided to award the project to another group due to lack of financial capacity.
According to Ho Chi Minh City Zoning and Architecture Department,
“The area would be dominated by green landscaping and an ecological tourism resort combined with housing. Out of the total of 426 hectares, around 100 hectares will be reserved for parks and public facilities with the remaining 48 hectares would be devoted to transport infrastructure.”
The development costs for the project, including the relocation of thousands of residents is estimated at US$3 billion.
Last week, chairman of the Ho Chi Minh City People’s Committee, Le Hoang Quan, requested that the local Department of Finance focus on a compensation plan for the approximately 3,000 households remaining in the area.
Bitexco will work closely with The local Department of Zoning and Architecture which will be responsible for setting up a special team to guide the investor on implementing the 1/2000 scale plan.
The department proposed changes to the current plan including the addition of a technology center and an increase of the potential population from 30,000 to 41,000-50,000.
In addition to successful projects in Saigon, Bitexco has seen development success in Hanoi with the Garden Shopping Mall, The Manor residential complex and soon-to-be-completed JW Marriott Hotel.
The company is also responsible for the development of One Ho Chi Minh City, a twin tower project across from Ben Thanh Market which is scheduled for completion in 2016 and will house the country’s first Ritz-Carlton Hotel.
