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Keangnam residents petition PM

Released at: 12:51, 11/05/2015

Keangnam residents petition PM

Petition calls for management fees to be returned to residents of Keangnam Hanoi Landmark Tower as parent company goes under.

by Tue Lam

After news emerged that South Korea’s Keangnam Group is heading towards bankruptcy and must sell Vietnam’s tallest building, Keangnam Hanoi Landmark Tower, residents at the building expressed their anxiety over losing maintenance fees totaling VND160 billion ($7.4 million) and have submitted a petition to the government.

According to a representative of the residents, with a sale price of VND60 million ($2,790) per sq m, maintenance fees already paid to Keangnam for the 922 apartments in the building are estimated at VND160 billion ($7.4 million). The investor is yet to transfer these fees to the building management department, as provided for by law.

Keangnam’s management department said that residents have repeatedly sought assistance from the Minister of Construction and the Secretary of the Hanoi Party Committee but have heard nothing in response. They have therefore called for help from the Prime Minister, in the hope that the maintenance fees can be retrieved. “In case Keangnam must sell its building in Hanoi, the government should only approve the transfer of assets when the investor has repaid the maintenance fees,” the petition submitted to the government by the building management department stated.

The Korea Economic Daily, the most widely read economic newspaper in South Korea, reported recently that after a series of scandals involving its parent company in South Korea the Keangnam Hanoi Landmark Tower was up for sale with a price tag of $770 million.

Keangnam Hanoi Landmark Tower, the tallest building in Vietnam, is located in Hanoi’s southwest on a total area of 610,000 sq m, including a 72-storey high-rise building and two 48-storey apartment buildings. According to South Korean media, Keangnam Enterprises invested more than $1 billion in its construction, of which nearly $500 million was borrowed from banks.

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