DUBAI: A Dubai based firm, Global Sphere (GS), has launched a mega real estate project in Vietnam that will have a complete city services covering a 35-square kilometre area with only a 10 kilometre drive away from the capital, Hanoi.
The Chairman of Board of Directors of Global Sphere, Dr Abdullah Al Sayegh said, “the project is an integrated community with a total value estimated at $30 billion.” The first phase value is $10 billion expected to be accomplished by 2020.
He said the project, which lies only 4 kilometres away from the airport, is the largest UAE-based project in the Republic of Vietnam.
Al Sayegh revealed that the land in Urban No.8, which some dubbed “Hanoi Wall Street” was given out by the Vietnamese government after negotiations spear-headed by Global Sphere Vietnamese partner, Viet Royal Group.
“The investment opportunities in developing countries are promising,” said Al Sayegh.
“This is the first stage of the project, adding that the total project ends in 2030, after galloping up to $30 billion. The project will have about 70 residential towers with varying heights between 40 and 70 floors,” he added.
“The project will accommodate between 300,000 to 400,000 people. The engineering plan for the project resembles Downtown Dubai,” he said.
A UAE engineering firm, NEXT carried out consultancy for Global Sphere.
“The Global Sphere is a port for the entry of many UAE companies to Vietnamese market because the implementation is entirely self-funded,” said Al Sayegh.
“All the company’s projects are development and investment projects. They were carefully followed proactively by the embassies of both countries carried out frequent visits,” he added.
Al Sayegh said the company’s projects are ‘not related to a particular geographic area’ but ‘linked with distinct investment opportunities which we aim to seize in any part of the world.’
He added that Global Sphere aims at setting up projects in future in many countries under development in Africa and Asia “in addition to the projects that we have in the Arab region. We are ready to engage into negotiations with prospective partners.”
On financing, Al Sayegh pointed out that the company is funding by up to 100 per cent of the projects that join as a partners.
“Among our unique aspects is departure from the projects at a certain level in order to keep the funds of investors in the company.”
He explained that Global Sphere enters projects is divided with governments or with individual investors.
“If the entry in the projects with individual investors, the negotiations should be according to what is agreed upon between the two parties, but for the projects with governments, they rely on a particular method which we finance the project on long periods of time may extend to 25 years.”
Al Sayegh said the company acquires the biggest percentage, 80 per cent against 20 per cent for the other party in the first five years, and thereafter the ratio comes down 60 per cent to 40 per cent.
“This ownership applies when the other party is a government. After 10 years, the ratio of the company becomes 51 per cent to 49 per cent, and after 25 years, the situation of property is contrary to what we started with, where the ratio of “Global Sphere” turns to 20 per cent and 80 per cent of the state.”
He said the company enters as a partner in the project provides funding ranging between 80 per cent and 100 per cent of the required value of the project whereas profit-sharing and retrieval is case-by-case arrangement based on the negotiations of parties involved.
“We as a company are ready to provide the necessary funding within and outside the UAE on the basis of negotiations with potential partners.”
Al Sayegh added that this project is the first of the company’s business in Vietnam, but involving a number of contracts including projects for the production of solar energy to be carried out in partnership with the Worldtech Corporation, while the other remaining projects went to many different companies within the Republic of Vietnam.