Land certificate “Golden Land” 152 Tran Phu revoked and canceled
Recently, Ho Chi Minh City Department of Natural Resources and Environment (DNRE) has announced the revocation and cancellation of the land use right certificate (red book) issued for an area of nearly 31,000 square meters at 152 Tran Phu Street, District 5 (Ho Chi Minh City).
Earlier, in Conclusion No. 966/KL-TTCP dated September 20, 2022 on the inspection of Vietnam National Tobacco Corporation (Vinataba), the Government Inspectorate pointed out numerous violations committed by the company in the investment and construction activities on the land at 152 Tran Phu Street.
Vina Square 152 Tran Phu project rendering.
Specifically, the company failed to reassess assets; violated instructions and transferred the land without seeking permission from the Prime Minister; failed to auction the land use right, resulting in potential losses of state and corporate funds.
The Government Inspectorate recommended that the Prime Minister direct the State Capital Management Committee in Enterprises to lead, together with the Ministry of Finance, Ho Chi Minh City People’s Committee, Vinataba, and relevant departments and agencies, to recover the land and premises with an area of nearly 31,000 square meters at 152 Tran Phu Street. If any violations are found, they should be referred to the investigative authorities and responsibilities should be reviewed and disciplinary actions should be taken according to regulations against any organizations or individuals involved in the violations.
In accordance with the conclusions of the Government Inspectorate, on October 25, 2023, the Ho Chi Minh City People’s Committee issued a decision to revoke the land in question.
In January 2024, the Ho Chi Minh City Land Registration Office sent an official letter requesting Vina Alliance LLC and Vinataba to promptly surrender the original land use right certificate of the aforementioned land for management in accordance with the provisions of the law.
However, due to Vina Alliance LLC’s failure to comply with the return of the land use right certificate for the land at 152 Tran Phu Street, the DNRE of Ho Chi Minh City announced that the land use right certificate is no longer legally valid.
How much did Vina Capital benefit from investing in “Golden Land” 152 Tran Phu?
As for the origin of this land lot, the “Golden Land” at 152 Tran Phu Street has three frontages on Tran Phu – Le Hong Phong – Tran Nhan Ton streets, a large area, and a prime location in the center of District 5, Ho Chi Minh City.
This land lot was formerly the Saigon Cigarette Factory under Saigon Tobacco Company (100% owned by Vinataba).
In 2008, Vina Alliance LLC was officially established when Vinataba and several member units decided to contribute capital to implement the Vina Square commercial project on the aforementioned land lot at 152 Tran Phu Street, along with other partners.
The six founding members of Vina Alliance include Vinataba, Vinataba Saigon, Vietnam National Tobacco Trading and Investment Joint Stock Company, Do Thanh Viet Joint Stock Company, Dream Home Trading Construction Commercial Joint Stock Company, and Pacific Alliance Land Limited (a subsidiary of Vinaland Ltd, a member of Vina Capital).
According to the business registration at the end of June 2016, Vina Alliance had a charter capital of VND 880 billion (equivalent to USD 55 million), however, the list of shareholders at that time only included four legal entities: Pacific Alliance Land Limited (62%), Son Dong Company Limited (10.5%), Vinataba (20%), and Saigon Tobacco Company (7.5%).
With a stake of up to 62%, VinaCapital became the main player in the VinaSquare project, while Vinataba was the legal entity that decided to initiate this project.
However, in January 2017, VinaCapital divested its 62% stake in Vina Alliance to Tri Duc Real Estate Company Limited. The ownership percentages of the remaining three shareholders remained unchanged.
According to the announcement on the London Stock Exchange’s website (www.londonstockexchange.com) on September 7, 2017, the transfer agreement between Tri Duc and Vinaland Ltd was valued at USD 41.2 million. After repaying the shareholder loans, Vina Capital’s member fund received USD 41 million from this deal.
Source: Vinataba’s consolidated financial statements for the first half of 2017
After Pacific Alliance Land Limited, Vinataba gradually withdrew from the golden land project at Tran Phu Street. In the consolidated financial statements for the first half of 2017, the long-term investment in Vina Alliance was only VND 66 billion, while Vinataba and Vinataba Saigon previously held a total of 27.5% of the capital in Vina Alliance, equivalent to VND 242 billion.
In the explanatory note, Vinataba also stated that Saigon Tobacco Company is currently completing the procedures to transfer its capital contribution in Vina Alliance based on Resolution No. 05/NQ-TLSG dated March 29, 2017 of Vinataba Saigon’s Council of Members approving the plan to transfer its capital contribution in Vina Alliance, and Resolution No. 06/NQ-TLSG dated April 19, 2017 of the company’s Council of Members approving the reserved price for transferring its capital contribution, which is over VND 101.3 billion.
By September 2017, Vinataba and its main subsidiary were no longer involved in the VinaSquare project, as at this time, the remaining shareholders of Vina Alliance were Son Dong Company Limited with a 38% stake and Tri Duc Real Estate Company Limited with a 62% stake.
In January 2018, Vina Alliance’s charter capital increased from VND 880 billion to VND 1,200 billion.
