Daewoo E&C wins approval to sell land in Hanoi's Starlake new city for 120 billion won

Daewoo Engineering & Construction has received final approval from local authorities to sell a key commercial site within Starlake, a large-scale new city it is developing in Hanoi, Vietnam. With the sale process now complete, development of commercial and high-end residential facilities in the new city is gaining momentum, accelerating Daewoo E&C's overall development project.

According to the Hanoi People's Committee on Nov. 7, the city officially approved an investment policy the previous day for Xuan La, a subsidiary of Sunshine Group, to acquire part of the Starlake site from THT Development, Daewoo E&C's Vietnamese unit. The approval is an administrative follow-up to the land transfer agreement signed by the two companies in mid-October.

The asset being sold is the K1-HH2 block located in the center of Starlake new city. The site covers about 11,483 square meters and is designated for public services, commercial facilities and high-end residential development. The total acquisition amount is reported at 2.277 trillion dong (about 120 billion won), of which land use fees account for about 1.566 trillion dong (about 85 billion won) and the transfer payment for 711 billion dong (about 38 billion won).

Xuan La, the buyer, is a real estate developer established in 2016, with Sunshine Homes, an affiliate of conglomerate Sunshine Group, holding a 97% stake. Xuan La is currently developing Sunshine Capital Tay Thang Long, a mixed-use complex on Thang Long Boulevard in Hanoi.

Sunshine Group, the parent company, is also building a strong presence in Ciputra International City, just minutes from Starlake new city. It is developing multiple high-end residential projects there, including Noble Crystal Tay Ho, Sunshine City and Sunshine Riverside, solidifying its position in the Hanoi real estate market.

Starlake new city is a large-scale mixed-use development that Daewoo E&C is pursuing on about 1.86 million square meters near West Lake in central Hanoi, with the goal of building the 'Gangnam of Hanoi.' Daewoo E&C is leading the entire process—from planning and land compensation to licensing, financing, construction and sales. The area is set to become Hanoi's new administrative, economic and diplomatic center.

Daewoo E&C is pursuing a dual strategy of developing land directly while also selling blocks to global companies and local investors. Samsung Electronics has already built a large R&D center there, and Korean companies such as CJ and E-Mart, along with Japan's Toshin Development and Vietnam's Thaco Group, have purchased land and are participating in development.

With Hanoi's approval of the investment policy, development of commercial zones in Starlake new city is picking up speed. Daewoo E&C will also secure more flexibility in local project funding as the large land sale proceeds are reflected in THT Development's earnings.

※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.