Lotte Vietnam boosts investment
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South Korea’s Lotte has acquired a majority share in a Ho Chi Minh City shopping centre, office and apartment complex as it protects its Vietnam beachhead.
Lotte Vietnam has bought out another Korean business’ 70 per cent stake in Diamond Plaza, a high profile 20-story tower housing a multi-level department store, foodcourt and other retail facilities, along with offices, a medical centre, cinema and apartments.
It was one of the first modern era shopping developments in the country’s largest city, although its footprint is dwarfed by more recent developments such as Vincom and Union Square, also in the CBD, and Crescent Mall in the Asian-expatriate hub of District 7.
Lotte already has extensive investments, and reach, in Vietnam, operating Lotte Mart hypermarkets, cinemas, a hotel on the Saigon riverfront and a chain of Lotteria fast food outlets which was well established before US rival McDonald’s debuted in Vietnam in late 2013.
Diamond Plaza was opened in August 2000, then valued at US$60 million. It was a joint venture between local developer Construction Corporation No.1 and Korean steel company Posec, a subsidiary of steel maker Posco. Lotte has bought out Posec’s interest for an undisclosed amount.
In another transaction not officially released, Lotte has purchased two Pico Plaza branded shopping centres in Hanoi and Ho Chi Minh City and rebranded them Lotte after converting supermarkets into Lotte Mart hypermarkets.
Questions & Answers
Q.Which specific assets did Lotte acquire as part of this increased investment?
Which specific assets did Lotte acquire as part of this increased investment?
Lotte acquired a majority share in the Diamond Plaza complex in Ho Chi Minh City, buying out Posec's 70 per cent stake. It also purchased two Pico Plaza branded shopping centres in Hanoi and Ho Chi Minh City.
Q.What kind of businesses does Lotte already operate in Vietnam?
What kind of businesses does Lotte already operate in Vietnam?
Lotte already operates Lotte Mart hypermarkets, cinemas, a hotel on the Saigon riverfront, and a chain of Lotteria fast food outlets. These provide an extensive reach in the country.
Q.How old is the Diamond Plaza development and what was its original valuation?
How old is the Diamond Plaza development and what was its original valuation?
Diamond Plaza opened in August 2000, making it over two decades old. At the time of its opening, the development was valued at US$60 million.