The Hanoitimes – Daewoo Hotel in Hanoi has finally fallen into the hands of Hanel, a Vietnamese company. It may be unknown to many people that Hanel only acquired the 70 percent of stakes from the South Korean investor after a thorny combat with another South Korean big guy – Lotte.
The sale of Daewoo Hotel caught the special attention from the public because of the high value of the property, the attractiveness of candidate buyers who presented special offers, and the big scale of the contract.
Located in the cultural, commercial and diplomatic center of Hanoi, next to the Thu Le Park and contingent to the main roads of Kim Ma, Lieu Giai and Dao Tan, Daewoo Hotel has 411 rooms designed and built in accordance with the highest standards, including two rooms for heads of states.
The Daeha apartment block comprises of 193 apartments, while the Daeha office area is a 15 storey block with 21,721 square meters in high end office area for leasing.
The Daeha Joint Venture Company Ltd was established in accordance with the Vientamese laws and had the chartered capital of 43.61 million dollars. The Vietnamese partner – Hanel Company, contributed 13.083 million dollars in land use right (30 percent of the chartered capital), while the South Korean Daewoo contributed 30.527 million dollars, holding 70 percent of the total chartered capital.
A source said that the total estimated assets of the Daewoo complex, including the office, hotel and apartment blocks is about 431 million dollars.
Becoming operational in 1996, the project began making profit in 2004. By the end of 2009, the joint venture had reportedly incurred the accumulative loss of 3.167 million dollars.
In 2010, the complex made a profit of 8.642 million dollars. This was for the first time the profit of 5 million dollars was divided to the partners. The joint venture’s 2010 finance report showed that the joint venture still owed 53 million dollars to Woori Bank.
In principle, the Vietnamese and South Korean partners had to follow the inked provisions to ensure the benefits of the two parties. The operation license of the joint venture would be amended to raise the operation duration to 49 years.
Under the agreement made by the two parties, there would be the capital transfer from Daewoo to Hanel which would be carried out in according to a timetable. It was expected that 10 percent of chartered capital would be transferred by 2017, while another 5 percent would be transferred by 2031 and 10 percent more by 2042.
However, in July 2010, Daewoo informed Hanel its plan to sell its 70 percent of stakes in the joint venture to Lotte, which is now developing a real estate project on the “golden land plot” next to Daewoo hotel.
However, Hanel then reminded Daewoo of a provision in the investment license which says that the partners in the joint venture, have the priority to buy stakes when one of the partners plans to sell.
In March 2011, Hanel offered the price of 90 million dollars and some additional things for the Daewoo complex. Hanel also pointed out that Daewoo would be able to enjoy many other advantages if cooperating with Hanel, and that Hanel’s offer was more attractive than Lottle.
Daewoo then asked Hanel to pay six million dollars more, which meant that Daewoo agreed to sell the 70 percent of stakes at 96 million dollars.
The advantages mentioned by Hanel include the more simple procedures to amend the investment license, the shorter time for transfer and payment and the next cooperation opportunities with Hanel in the future.
The single combat between Hanel and Lotte for Daewoo Hanoi – Hotels & Restaurants – Travel Related image(s)
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