On April 19, 2023, Novaland Group, Tien Phong Commercial Joint Stock Bank (TPBank) and Ricons Construction Investment Joint Stock Company (Ricons) sign a MOU on cooperation to restart and complete the construction of The Grand Manhattan – an apartment-commercial-service complex project at District 1, Ho Chi Minh City.
Under the agreement, TPBank will continue to provide a financial package for The Grand Manhattan to continue construction after suspension period; Ricons will assume the role of general construction contractor, committing to ensure project quality and construction progress with the developer.
When the legal attention is removed and capital flow is positive, the restart of construction of The Grand Manhattan is expected to be a bright spot to promote market liquidity in the near future.
Novaland – TPBank – Ricons sign a MoU to re-start and complete construction of The Grand Manhattan
In order to remove difficulties for real estate market, Prime Minister has established the Working Group and issued many Officials, Decrees, Resolutions and Decisions to promptly direct the Ministries, Sectors and localities in order to carry out several tasks and solutions in the short- and long-term to remove and promote safe, healthy and sustainable development of real estate market.
Up to now, The Grand Manhattan is one of the first 7 projects located in the center of HCMC city which is being lately focused on to remove legal obstacles. In the context of limited real estate supply in the center area and restriction of capital mobilization channels, the project's continued implementation of construction is considered a bright spot to help investors have more confidence in the market recovery as well as supplementing high-quality housing in HCMC.
As a financial partner accompanying The Grand Manhattan project from the very beginning, and now continuing to fund project to complete construction, a representative of TPBank said: "In addition to focusing capital resources on priority areas, by being encouraged under the direction of Government to promote economic development, TPBank still preserves a part of credit for practical real estate projects that suit the needs of buyers. Located in District 1, Ho Chi Minh City, The Grand Manhattan is also the project that TPBank provides funding after a pause. After conducting careful evaluation and survey, the funding for The Grand Manhattan to complete construction not only provides quality housing products, but TPBank is also in line with the Government's direction and goals in Resolution No. 33/NQCP in focusing on removing obstacles for ongoing projects in order to timely complete and create market supply."
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Representative from the developer, TPBank and Ricons visit the actual apartment model after signing ceremony
Given that The Grand Manhattan project is funded for construction, the meaning goes beyond the restart of a real estate project. This can be seen as a result of significant efforts of the entire operating system, including drastic decisions of Government; the cooperation and companionship of local agencies, organizations, financial enterprises and construction enterprises... as well as the efforts of real estate enterprises themselves for the purpose of recovery, promoting safe and sustainable development of real estate market.
From the standpoint of Novaland, the fact that being funded by TPBank in the context of challenging market once again affirms the true value of The Grand Manhattan and the group’s ongoing efforts and determination as well.
According to restructuring strategy, Novaland continues to focusing resources on completing key projects, handing over houses in phases and at the same time flexibly adjusting construction plan of project subdivisions to suit current situation. The group is also negotiating with credit institutions to arrange capital sources and trying to coordinate with agencies, departments and local authorities to remove and complete legal projects by the soonest; and strive to ensure interests of customers, investors and related parties.
“The Grand Manhattan is an apartment - commercial - service complex that Novaland has devoted a lot of investment and development, receiving great attention of a large number of investors. The project’s positive restart today is the result of government's timely supporting policies to remove difficulties as well as the understanding and companionship of partners and customers. This really creates strong motivation and strengthen confidence to us as a developer, which forces us to make ceaseless efforts to put other key projects into construction and complete by the shortest route”, said Mr. Ngo Hong Hai, General Director of Dat Viet Company – the Project Investor.
Perspective of The Grand Manhattan project
The Grand Manhattan apartment-commercial-service complex was built on an area of 14,000 m2 at the prime location of 2 frontages of Co Giang - Co Bac in the heart of District 1. When completed, the project will provide more than 1,000 apartments with full of luxurious and modern facilities, contributing to quenching the "thirst" of high-class serviced housing and apartments in the leading economic center of the country and in the context of excess demand.
Up to now, the project has completed the construction of basic infrastructure, foundation, basement, concrete pour complete at 28th-floor and some utility items such as the actual model house at the project, .... Ricons will carry out construction after the re-start event, ensuring coordination between relevant parties to achieve the construction progress and quality as agreed with investors towards the goal of accompanying with the developer to handover in the fourth quarter of 2024.
Besides The Grand Manhattan, a series of key projects invested and developed by Novaland such as NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City and HCMC residential projects are also being negotiated with financial partners and contractors to be soon put into operation and complete within a short period of time.