The HCMC People’s Committee is awaiting the Prime Minister’s approval for its proposal on appointing a group of companies, including Toshin Development, Join, Nikken Sekkei and Osaka Chikagai. Toshin would be the investor to implement a component project of the Ben Thanh commercial center.

 

It is also seeking the government’s permission to use ODA capital to build several project items, including walkways, a square and underground public works.

 

The Ben Thanh commercial center is to be located underneath the Quach Thi Trang Square and along Le Loi Road, from Ben Thanh market to the City Theatre.

 

The center is expected to cover an area of 45,000 square meters.

 

Toshin Development of Japan and the Van Thinh Phat group of well-known tycoon Truong My Lan both want to become investors of an underground commercial center project in the prime real estate area in HCM City’s downtown.

JICA (the Japan International Cooperation Agency) estimates that the project needs investment capital of VND6.865 trillion. 

 

Meanwhile, HCMC authorities reported to the Prime Minister in May 2016 that the total investment capital estimated by Toshin may reach VND8.392 trillion. 

 

In a document to the Prime Minister in late May 2016, the city authorities said that two groups of investors wanted the component project. 

 

Besides Toshin, the city also received a proposal from Sai Gon Star, an infrastructure & real estate development firm, with consultancy from Japanese Nihon Sekkei.

 

Sources said that the group of investors represented by Toshin has great advantages to win the project. Toshin promised to help HCMC authorities work with the Japanese government on the arrangement of ODA capital for the public works of the project.

 

The other great advantage of Toshin is that it once worked with Keppel Land Sowatco on the Takashimaya shopping center at Saigon Center 2. The position on Le Loi Road will help connect Takashimaya with the Ben Thanh underground center.

 

As for Sai Gon Star, analysts said that it is the biggest shareholder of New Life, a big real estate company.

 

In the first quarter of 2016, New Life bought Duxton Hotel Saigon from Low Keng Huat at $49.24 million. 

 

The new owners of Duxton Hotel Saigon have close relations with Van Thinh Phat Group owned by Truong My Lan, the tycoon who owns many ‘golden land plots’ on Nguyen Hue Road, including Times Square, Union Square and Van Thinh Phat Office Building.

 

In May 2016, Van Thinh Phat asked the city authorities to allow it to conduct a survey and feasibility study for a park project at the Bach Dang Tourism Port.