(PLO)- The project transfer is one of the measures to solve difficulties for each project, contributing to the restoration of unfinished projects.
Investors and associations propose to allow enterprises to transfer all or part of a project when they have a certificate (GCN) or a decision to allocate or lease land from the agency. competent state agency.
Revitalize the real estate project, change the face of the city
The real estate market (real estate) is gradually erasing the gray color when some investors are hunting to transfer real estate projects for many years to revive. For example, the iconic building of Ho Chi Minh City, Saigon One Tower, located in the heart of the city over the past decade, is still a gray, unfinished concrete block. Immediately after returning to the new owner, Viva Land Investment and Development Joint Stock Company with offices in Singapore, Ho Chi Minh City, and Hanoi, this project changed its name to IFC One Saigon. The new dragon-scale glass covers the building, the investor begins to prepare positive business plans.
Two major projects have just been revived in Ho Chi Minh City, Grand Sentosa and IFC One Saigon (dragon scale facade). Photo: Q.HUY – NGUYEN NHI
Another project after more than 13 years of “making a mat” that started to revive is Kenton Node, which was invested by Tai Nguyen Trading Production Construction Co., Ltd., started in 2009.
After 13 years of unfinished construction, this project was recently restarted with the handshake of Novaland Group and the old investor, and renamed Grand Sentosa. Novaland is committed to putting the project into operation on schedule in 2024.
A series of other popular mergers and acquisitions (M&A) deals in early 2022, a billion-dollar super project with the old name of Saigon Binh An urban area, have been handed over to Masterise Homes Group with the new name of The Global City. According to research, this is a project with a scale of 117 hectares, located next to the Saigon Sports City complex, adjacent to the Long Thanh – Dau Giay highway.
In addition to the above projects, the city still has many projects that are being transferred and have difficulties in procedures that need to be removed. Many large enterprises and corporations have land funds, projects or projects that have been implemented and handed over to customers but still encounter some problems. Typical among them is Hung Thinh Group with a number of projects.
The first is the Lavita Garden high-rise apartment project in Truong Tho ward, Thu Duc city, with a scale of 15,314.5 m2, the origin of private land transferred by Tin Nghia Company from the people. The project has been approved for the 1/500 master plan and investment project according to Decree 90 of the Government. At the same time, the project has had a decision to allocate land, change the land use purpose, and submit the land price many times but has not yet been approved.
Or the Hung Thinh project that has been transferred from Waseco Company has been approved by the City People’s Committee since 2015. The project is approved for investment according to Decree 90 of the Government, exempted from construction permit. The project has been granted two land use right certificates (50-year office building land and long-term stable apartment land). At the same time, the project has been completed and put into use since 2018. Currently, the enterprise is carrying out procedures for appraisal of additional financial obligations due to planning adjustments and giving priority to granting certificates to customers. However, because the project is under legal review, this procedure is still problematic.
Another corporation, Novaland, also said that it encountered many problems in transferred projects. The company proposed the City People’s Committee and the competent state agency to consider supporting early completion of the remaining legal procedures of the project, including the procedures for approving the land use levy plan and granting the use right certificate. land, ownership of houses and other land-attached assets.
Project transfer is a normal business activity
Experts say that it is necessary to consider the project transfer as a normal business activity of enterprises in the market. On the other hand, while the market is difficult, the investor’s capital is exhausted, and unfinished products cannot be released to the market, creating favorable conditions for project trading and offering suitable products is one of the ways Good support for real estate.
Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association (HoREA), said in Resolution 42 of the National Assembly allowing credit institutions, foreign bank branches, organizations to buy, sell and handle bad debts to be transferred. transfer the collateral of a bad debt which is a real estate project when there is a decision on land allocation or land lease issued by a competent state agency. This regulation has created favorable conditions for commercial banks to handle the collateral of bad debts, which are real estate projects.
For investors who want to buy back suspended projects, it is necessary to minimize the conditions and simplify the procedures so that the project can be transferred easily and quickly.
Lawyer TRAN DUC PHONG, Ho Chi Minh City Bar Association
Meanwhile, normal real estate enterprises (without bad debt) who want to transfer projects must have a certificate (pink book) according to regulations.
Specifically, the Land Law 2013 stipulates that investment projects on construction and business of housing are entitled to transfer land use rights in association with the transfer of all or part of the project when a certificate is obtained. The transferee of the land use right must implement the investment project according to the approved schedule.
In addition, according to the 2014 Law on Real Estate Business, investors are allowed to transfer when they have obtained a certificate of land use rights for the whole or part of the transferred project.
“Therefore, HoREA recommends that real estate businesses and banks should have the same project transfer rights. Allowing the transfer of the project when there is a decision on land allocation or land lease issued by a competent state agency to facilitate both handling of bad debts, collateral being mortgaged real estate at commercial banks, and applying Commonly used for other real estate project transfer activities” – Mr. Chau suggested.
Lawyer Tran Duc Phuong, Ho Chi Minh City Bar Association, said that for projects that are behind schedule, “covering blankets” for more than 5-10 years, there should be regulations on heavy penalties. If the investor is incompetent, it is forced to transfer, otherwise the State withdraws the project.
As for the project transfer, according to lawyer Phuong, the authorities need to change their approach to the issue in the revision of the Law on Real Estate Business and the Law on Land. Specifically, investment should be considered as a long-term, continuous process, enterprises are free to choose one or several stages in which or all stages to do. The project must be cleared in the matter of transfer, only the new investor is strictly appraised and approved, meeting the conditions clearly specified in the law.
In addition, experts agree that housing construction and business investment projects are allowed to transfer land use rights associated with the transfer of the whole or part of the project when they have a license or have a license. decisions on land allocation or land lease by competent state agencies. The transferee of the land use right must implement the investment project according to the approved schedule.•
Almost two yearHCMC has only one project
eligible for transfer
At the Conference to develop a safe, healthy and sustainable real estate market in July, 2022, Director of the Ho Chi Minh City Department of Construction Tran Hoang Quan said that the city’s real estate market is still on the upswing. However, the process of market development, especially housing in Ho Chi Minh City, is still not sustainable, has not met the huge demand for social housing, suitable for people’s ability to pay. variety of products, especially housing for rent. Notably, from the beginning of 2021 until now, Ho Chi Minh City has only one project considered eligible for transfer.
The project transfer is one of the measures to solve difficulties for each project, contribute to project recovery, resume construction, for projects that have stopped construction, completed works, brought construction projects to a new level. products into the market, clearing inventory.
However, the transfer of housing projects in recent years has decreased sharply due to insufficient legal procedures and also due to a shortage of land fund, leading to a shortage of new projects, especially especially projects in the affordable housing segment.