Hoa Sen Corporation wants to transfer a project that started in 2016 but remains unfinished after 8 years
According to the recently published annual general meeting (AGM) documents for the fiscal year 2023-2024, Hoa Sen Corporation (stock code HSG) announced that the Board of Directors has discussed and agreed on the plan to promote and seek partners interested in transferring the project Hoa Sen Yen Bai Commercial and Service Center, Hotel, Restaurant, and Event Organization.
The purpose of transferring the above-mentioned project is to ensure compliance with the schedule committed to the People’s Committee of Yen Bai province and to be in line with the current resources of the corporation, following a previous announcement made by Hoa Sen.
Established in 2016, Hoa Sen Yen Bai Joint Stock Company has been implementing the project of a commercial and service center, hotel, restaurant, and event organization named Hoa Sen Yen Bai.
Accordingly, the project is a complex providing a variety of categories: a commercial center, a conference center, a 4-star hotel, a wedding hall, a cafe, high-end apartments… The main design combines the Northwest architecture with the symbol of the lotus, situated in a strategic location in the center of Yen Bai city, between major intersections and only “a few steps” away from the People’s Committee of the province.
The project is built on a 1.5-hectare piece of land with an expected total investment of 1,200 billion VND.
At that time, Hoa Sen Yen Bai Joint Stock Company had hoped that the project would be a “lever” for the strong development of tourism in Yen Bai in the future, as well as a large and highest-standard commercial center and hotel in Yen Bai.
Design image of Hoa Sen Corporation’s project
In the 2017 annual report, Hoa Sen Corporation assessed that the project implemented in the economic, political, and cultural center of Yen Bai province is convenient for trading and attracts tourists.
The project aims to build and operate a commercial, service, hotel, restaurant, and event complex, combined with the sale of commercial townhouses attached to land areas, contributing to the development of tourism and socio-economic in Yen Bai.
On October 30, 2017, the project was granted a construction permit for the works implemented on the project by the Yen Bai Department of Construction. Previously, Hoa Sen announced that they had been granted a certificate of land-use rights for the residential land area, measuring 4,090.3m2 to build a commercial townhouse area, and also signed a land lease contract for 5,585.2m2 to build a hotel building, a commercial center, and an event organization.
Current status of the project
Hoa Sen Corporation’s annual report for 2019 showed that for the commercial center block, the basic construction has been completed while the interior is being completed, and electrical, fire fighting systems are being constructed.
For the adjacent commercial townhouse area, the investor continues to develop the design, divide the land for the commercial townhouse items, while completing legal procedures to implement the project at the appropriate time.
Yen Bai Commercial and Service Center, Hotel, Restaurant, and Event Organization Project. Photo: Trong Nghia
Early last year, Hoa Sen Group Joint Stock Company announced a plan to contribute additional capital to Hoa Sen Yen Bai Joint Stock Company to serve production and business activities and implement the Hoa Sen Yen Bai Hotel project.
Specifically, Hoa Sen plans to contribute an additional VND 81 billion to increase the legal capital from VND 340 billion to VND 421 billion, completing the capital contribution on February 21, 2023.
Once the amount is raised, Hoa Sen Yen Bai Joint Stock Company will use it to serve production and business activities and implement the project. By March 5, 2023, Hoa Sen Yen Bai Joint Stock Company has amended its business registration, increasing the legal capital to VND 421 billion.
Current status of the Hoa Sen Yen Bai Commercial and Service Center, Hotel, Restaurant, and Event Organization Project
Currently, according to actual observations, the project has completed the rough construction and is located in a prime location in Yen Bai city, right at the intersection of three main roads: Nguyen Tat Thanh, Nguyen Van Cu, and Ngo Gia Tu in Dong Tam Ward, Yen Bai City.
According to the first-quarter financial report for the fiscal year 2023-2024 of this steel manufacturer, the construction cost at the Yen Bai Hoa Sen project is nearly VND 386 billion.
