The Sky’s the Limit: Landmark 72’s Journey from Vietnam’s Tallest Tower to a Troubled Past

According to The Korea Economic Daily, global investment group AON is looking to sell its entire stake in Landmark 72 for over 1,000 billion won, or more than 18.465 trillion VND.

The company is in negotiations with potential bidders to sell its entire stake.

Hanoi’s tallest building, once the tallest in Vietnam

Landmark 72 (formerly known as Keangnam Landmark Tower) is located on Pham Hung Street, Nam Tu Liem District, Hanoi, and is a mixed-use complex comprising a hotel, offices, apartments, and a shopping mall. The project had a total investment of up to US$1.05 billion by Keangnam Group (South Korea) and was completed in 2011.

This real estate includes a 72-story mixed-use tower with a height of 350m and two 48-story residential twin towers with a height of 212m. This construction project was approved on the occasion of the 1000th anniversary of Thang Long Hanoi and once surpassed Bitexco Financial Tower to become the tallest building in Vietnam at that time.

It held the title of the tallest building until 2018, after which it was surpassed by Vingroup’s Landmark 81.

Located in a prime location with two frontages on two major roads, Duong Dinh Nghe and Pham Hung, and situated at the intersection of Duong Dinh Nghe – Pham Hung – Me Tri, Landmark 72 boasts expensive office rental rates of up to $36/m2/month (excluding service fees).

Despite its prime location and many outstanding features, Landmark 72 is also known as a building that has faced several issues. From consecutive incidents to the troubles of its “birthfather,” Keangnam, which led to its decline and subsequent change of ownership.

The decline of Keangnam, the “birthfather”

During the period of 2006-2013, when Keangnam Group focused on this project in Hanoi, the late chairman, Sung Wan-jong, faced a series of allegations regarding his business operations.

At that time, South Korean media also reported that Landmark 72 was considered a reckless ambition of Mr. Sung Wan-jong, as the financial leverage was quite high, with nearly 50% of the assets being loan capital.

Just four years after its inauguration, the building changed hands.

At the beginning of 2015, an incident caused a stir when Parkson Keangnam suddenly closed its largest shopping center due to issues with the Keangnam Hanoi building owner.

Parkson also clarified that the information about Parkson Landmark 72 suddenly closing, trapping customers and staff in the stalls, was not true.

In early May 2015, a South Korean newspaper reported that Landmark 72 was put up for sale by the South Korean Court through the real estate management company Colliers International, with an asking price of 830 billion won.

Many big players then joined the race to acquire Landmark 72. AON Group outbid Goldman Sachs (USA) and the Qatar Investment Authority (QIA) to purchase the building for 454 billion won (approximately 8.383 trillion VND at the current exchange rate) from Keangnam, thus becoming the new owner of Landmark 72 since December 2015.

With the latest information, the Landmark 72 building is facing the possibility of changing hands once again after almost a decade.

Additionally, during the construction and operation of Landmark 72, Keangnam repeatedly encountered significant problems regarding construction safety violations and transfer pricing violations, resulting in adjustments worth trillions of VND.

There were also numerous issues with the residents of the two 48-story luxury apartment towers regarding construction area, service price, and quality…

What did the Feng Shui expert say?

The tumultuous fate of Landmark 72 has prompted Feng Shui experts to analyze the building’s energy.

In a sensational interview in 2015, Mr. Pham Cuong, a Feng Shui expert in Vietnam, stated that the most significant issue with Landmark 72 was its location.

According to him, a mega-project or the tallest building in Vietnam, such as Keangnam (Landmark 72), should be built on a special plot of land with a corresponding energy source. However, this requirement was not met.

“It can be likened to a shark kept in a few cubic meters of water intended for a dragon! For this reason, a shark will either die prematurely or live a weak and sickly life,” said Mr. Pham Cuong.

The Feng Shui expert opined that while the building’s location at the intersection of two roads is advantageous for attracting positive energy, the “inauspicious water” from the two roads, Pham Hung and Me Tri, is not sufficient for a 72-story building.

Of course, this is just the opinion of a Feng Shui expert, and in reality, this remains one of the most bustling complexes in the capital city of Hanoi.

Currently, in addition to Mirae Asset, sources say several real estate and infrastructure management companies are considering purchasing this skyscraper.