GS transfers property project in HCMC
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| The Paragon building in HCMC’s District 7. Parkson is in deal with Kim Cuong Corporation to manage the Saigon Paragon shopping mall at this building - Photo: Dinh Dung |
Le Hoai Anh, general director of Kim Cuong Corporation, told the Daily on the phone on Tuesday that the corporation had reached agreement with Parkson to manage the shopping section in the Paragon building in Phu My Hung town.
The local firm had decided to temporarily close the shopping mall on Nguyen Luong Bang Street in Phu My Hung after it had been operational for a year.
The 10-story building includes some 7,500 square meters for the shopping mall, some 9,000 square meters for office space, 4,000 square meters for an entertainment section and 3,000 square meters for a conference center.
Anh explained the temporary closure was due to the poor business performance in the shopping section due partly to ineffective management.
“We’ve decided to partner with the professional management firm Parkson to improve the building’s business performance,” Anh said, pinning hopes that Parkson’s good management will give a boost to the shopping mall.
However, tens of tenants in the shopping mall have voiced their anger as the building owner suddenly sent a notice of closing the shopping mall from early this month without informing them in due course, Tuoi Tre reported on Tuesday.
Some of them accused the building owner of violating agreements, unilaterally terminating contracts signed between the two sides. Others said that they received no information about the closure. The fact is that many tenants spent money for their store decoration and the closure will damage their turnover.
Anh told the Daily that the corporation had sent a notice of closure on August 14, advising tenants to temporarily stop their business for around two months so that the new management company could upgrade the building.
Anh said the corporation was negotiating with tenants to solve the problem, and expected to see the existing and new tenants to continue and start their business when the shopping mall section is up and running by December 15 this year.
In a related development, the HCMC government has issued a decision allowing property developer GS Saigon Development Company to transfer its property underway on Ly Thuong Kiet Street in HCMC’s District 10.
The project, one of the five property projects awarded to the company in return for the development of Tan Son Nhat-Binh Loi road, will be transferred to Phu Son Thuan Investment Construction Co., the city’s Department of Zoning and Architecture stated in its website.
The Xi Grand Court project is being developed on an area of around 18,000 square meters, with three blocks of condo buildings from 28 to 30 stories and a mix-use 25-story building.
According to the department, the project transfer is made because the property developer has faced difficulties as a result of the global economic downturn, and the transfer is to collect money for developing the road that it has pledged to pursue.
The department cites the city’s decision, saying all money from the deal will be used for the road development. The project’s site clearance has been done, and it is scheduled for completion by 2014.
