A Vietnamese property developer announced Friday it has pulled out its bid to build a trade center in Hanoi, citing gratuitous expenditures involved in the project.
Vincom Joint Stock Co., owner of the Vincom City Towers in the capital, had initially bid on a project to develop the existing Hom Duc Vien market into a trade center.
A company spokesman attributed the withdrawal to the project’s extra expenditures like compensation and site clearance, which the company said would cost an additional VND200 – VND300 billion outside the project’s main cost.
Vincom recently raised $37 million from a maiden auction of 5 million shares, or 8.33 percent of the company.
The company has forecast its net profit would rise 9 percent to $8.6 million next year on revenues of $15.2 million due to strong property demand.
The firm is set to list on the Ho Chi Minh City market next month.
It plans to construct two major office-trade complexes and a massive parking lot in the HCMC’s downtown for a total of $250 million.
Vincom is also seeking permission to set up a VND300 billion brokerage arm and a VND50billion fund manager.
Source: Thanh Nien
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