Lotte raises investment in mega mixed-use project in HCMC to $2.28 bln, partners with local developer Phat Dat

South Korea's Lotte Group has nearly tripled the planned investment for its long-delayed Lotte Eco Smart City project in Ho Chi Minh City to around VND60 trillion ($2.28 billion) and signed a cooperation agreement with Phat Dat Real Estate Development Corp. (HoSE: PDR) to jointly develop parts of the project.

The agreement, signed on Friday, marks the latest step in advancing one of the largest mixed-use developments in Thu Thiem New Urban Area, where the project occupies one of the last sizeable land parcels in the district's central core.

The revised investment value is significantly higher than the VND20.1 trillion initially approved when the project received its investment licence.

Located in Functional Zone 2A, the project spans approximately 7.54 hectares across six land plots designated 2-1 to 2-6. The site sits adjacent to Thu Thiem's Central Square and central lake, with direct access to the Thu Thiem Tunnel and views across the Saigon River toward downtown HCMC.

The development is also expected to benefit from major transport infrastructure planned for the city's future International Financial Center, including the Ba Son Bridge, To Huu and Thu Thiem metro stations, as well as the proposed Thu Thiem-Long Thanh metro line linking the city center with Long Thanh International Airport, located in the neighboring city of Dong Nai.

Under the master plan, Lotte Eco Smart City will comprise Grade A office towers, a shopping mall, hospitality facilities and high-end residential apartments built to international standards. Earlier plans envisioned 11 towers ranging from five to 50 storeys on a site of more than 74,500 square meters.

Under the cooperation agreement, Phat Dat will co-develop the residential component on plots 2-2, 2-4 and 2-6. This company will also develop two commercial office towers on plots 2-1 and 2-3, together with the retail podium and underground parking facilities.

The project marks Phat Dat's first major presence in the core area of Thu Thiem and aligns with its strategy of focusing on high-value real estate assets in HCMC.

For Lotte, partnering with an experienced local developer is expected to help accelerate a project that has faced years of delays due to legal and administrative hurdles.

Shin Man Soo, vice chairman of Lotte Engineering & Construction (Lotte E&C), said Lotte Eco Smart City is one of the group's flagship investments in Vietnam and that combining Lotte's international development expertise with Phat Dat's local market knowledge would help deliver the project to international standards.

Phat Dat chairman Nguyen Van Dat said the project's significance extends beyond its investment scale, adding that it would contribute to the development of Thu Thiem as Ho Chi Minh City's future administrative, financial and commercial center.

Lotte won the bid for the Thu Thiem Eco Smart City project in 2017 and held a groundbreaking ceremony in September 2022 after receiving land allocation and lease approvals from city authorities.

However, despite signing the investment agreement nearly eight years ago and breaking ground more than three years ago, construction has yet to begin because of unresolved legal procedures.

If completed as planned, Lotte Eco Smart City is expected to become one of Thu Thiem's landmark developments and play a key role in shaping HCMC's future International Financial Center.