Daewoo Engineering and Construction (Daewoo E&C) is planning to invest US$388 million in the Star Lake City project in Hanoi, Vietnam jointly with Korean financial institutions.
Daewoo E&C announced on Feb. 3 that it signed an investment development agreement with Korean financial institutions to promote a property development project in Star Lake City, Hanoi, Vietnam on Jan. 20.
The project involves building two 35-story edifices, which would accommodate a hotel, serviced residences, business offices, and retail facilities, in a block (B3CC1 Block) of Star Lake City, a new city being developed by Daewoo E&C. The cost of the development project is US$388 million. Construction will start this year for completion in 2024.
Daewoo E&C will create a fund together with Korea Development Bank and KB Securities. A special purpose company (SPC) will be established in Vietnam to carry out the project. This will be the first time that Korean financial institutions invest in a large-scale real estate development project in Vietnam.
The Hanoi Star Lake City project started in 1996 when Daewoo E&C proposed building a new city to the Vietnamese government. The city is being developed by THT, a company owned 100 percent by Daewoo E&C, on a site of 2,104,281 square meters, which is equivalent to two-thirds of the size of Yeouido in Korea. The city will be built in the West Lake, northwest of Hanoi. The project will cost US$2.2 billion in total.