Limitless committed to build $550m Halong Star
17-07-2013
The MoU is another testament to Limitless’ commitment to the Halong Bay project
Limitless recently signed a memorandum of understanding with the Quang Ninh province’s government for the implementation of the mixed-use development.
The agreement was signed in Dubai by Ali Rashid Lootah - chairman of Nakheel and Limitless and Pham Minh Chinh - party secretary of Quang Ninh province at a meeting to discuss strategic partnership opportunities between Nakheel, Limitless and Quang Ninh province.
The delegation from Quang Ninh was also given a tour of Nakheel’s and Limitless’ key projects, including the flagship Palm Jumeirah island.
A Limitless spokesman said that Halong Star was key to the company’s international investment portfolios and the MoU was another step forward in turning the project into reality.
The project has also seen a new lease of life following the recent acquisition of Sovico Holdings, a strong domestic private investment group.
In May, Sovico Holdings signed a joint venture agreement with Limitless for the construction of Halong Star. Accordingly, Sovico Holdings holds a 51 stake in the joint venture, Limitless World 43 per cent and Viet-My Ha Long the remaining.
Sovico Holdings will now, on behalf of the joint venture, complete the necessary formalities for the project to get underway.
The Halong Star project first began in 2007 as a joint venture between Limitless, an affiliate of Dubai World, Viet-My Ha Long Joint Stock Company and the International Property Investment Partners LLC.
It had initial investment capital of $220 million and ground-breaking took place in 2008. The total registered investment capital was then increased to $550 million in 2009, while International Property Investment Partners LLC transferred its minor stake to the Vietnamese partner.
However, in 2009 Dubai World had its fingers burnt by the global crisis and was forced to halt all projects worldwide to restructure their $26 billion debt. In 2010, Limitless announced that it had sorted out its financial problems and would continue the project. The company must now apply for an amended investment certificate after the three year delay.
Halong Star is a high-end, low density development near the world heritage recognised Halong Bay.
Located 200 metres above the bay, it will comprise a 250-room, five-star hotel with a 500-seat conference centre, a 100-room luxury boutique hotel, more than 230 villas, and hundreds of townhouses and apartments for up to 4,000 residents and many public facilities.
According to the new timeline, the villas and semi-detached houses will be finished in 2015, while other facilities such as a five and six-star hotel, clubs and multi-function facilities will be finished in 2017.
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