Another land deal dropped

Binh Minh Trading and Development Investment Co. Ltd., which won the auction for the land lot coded 3-9 in the Thu Thiem New Urban Area in HCMC’s Thu Duc City on December 10 last year, has proposed canceling a contract to buy the land lot.

The land lot of over 5,000 square meters was successfully auctioned at VND5.026 trillion, or 6.9 times higher than the reserve price.

Earlier, Tan Hoang Minh Group, whose subsidiary Viet Star Real Estate Investment Co. Ltd. won the auction for a land lot of over 10,0000 sq m in the new urban area, officially canceled a contract to buy the land lot late last month and lost its deposit of nearly VND600 billion.

Binh Minh and Viet Star were told to pay a land use cost of more than VND5 trillion and VND24.5 trillion, respectively, and a registration fee of VND500 million each. They were among four companies that won the auctions for four land lots in Thu Thiem, together with Dream Republic Corporation and Sheen Mega Joint Stock Company.

Dream Republic Corporation, which won the auction for a land lot with an area of some 6,400 square meters, owed a land use cost of VND3.82 trillion and a registration fee of VND500 million.

Sheen Mega JSC, which won the auction for an 8,600-square-meter land lot, is subject to a land use cost of VND4 trillion, but was exempted from the registration fee. The four companies must complete the payment of the registration fee and half of the land use cost no more than 30 days since the announcement on the cost, which was issued by the HCMC Tax Department on January 6, and the remaining cost must be settled within 90 days of the announcement.