The investor of the Cocobay Da Nang project recently issued a notice to unilaterally terminate the contract with customers at this project for the reason that it is in the process of restructuring and preparing resources to launch the project in second quarter 2024.
Thanh Do Construction and Development Investment Joint Stock Company – Investor of The Empire luxury resort and housing project (Cocobay Da Nang) recently issued a notice of unilateral contract termination to customers. at this project.
In this announcement, Thanh Do Company said that this enterprise is in the process of restructuring and preparing resources to launch the project in the second quarter of 2024. Prolonging sales contracts with customers in recent times is undesirable.
Thanh Do Company wants to restart the Cocobay Da Nang project in the second quarter of 2024 after many years of stagnation.
Therefore, the company unilaterally terminated the sales contract from the date of issuance of the notice. The customer will hand over all legal documents related to real estate and the current status of the property received according to the handover record to the company within 15 days of receiving the notice, as well as coordinate with the company. company to liquidate the sales contract.
Information at the press conference on March 20, Deputy Director of the Da Nang Department of Construction Le Van Tuan said that up to now, they have not received notice that Thanh Do wants to unilaterally terminate the contract with the customer. However, according to Mr. Tuan, this is a civil dispute between the investor and the customer. The Department will participate in cases of content related to state management roles.
Also according to Mr. Tuan, the Cocobay Da Nang project includes 2 subdivisions: District 1 with an area of 300,797 m2 and Q2 with an area of 212,529 m2. These two subdivisions have detailed planning approved by the People’s Committee of Da Nang City; The project has been constructed and partially put into use.
Regarding the District 1 subdivision, on February 1, 2019, the People’s Committee of Da Nang City issued a decision to approve detailed planning adjustments, with the main content being to convert 50% of hotel apartment buildings (not forming residential units) are being built in clusters HH2, HH3, HH5 into apartments (forming residential units).
Unbuilt high-rise hotel apartment buildings in clusters HH4, HH6, HH7 have been converted into apartments, villas, semi-detached villas, and townhouses. Particularly, high-rise building HH1 reduced its height from 50 floors to 40 floors, converting 50% into apartments.
In 2022, the investor proposes to adjust blocks HH2 and HH3 in the form of converting one block into an apartment and one block into a hotel apartment (condotel). After that, the Department of Construction guided the investor to carry out related procedures, but up to now the investor has not implemented it.
It is known that the Cocobay Da Nang project of Thanh Do Company (Empire Group) was started in June 2016 in the coastal area of Truong Sa street, Hoa Hai ward, Ngu Hanh Son district, Da Nang city. In 2017, after partial completion, including hotel apartment items (condotel) and many entertainment and resort items, this project was put into operation.
In this project, Thanh Do commits to paying profits to condotel buyers of up to 12%/year for 8 years. However, from January 1, 2020, Thanh Do suddenly announced to stop paying committed income to customers. Since then, this project has also stalled.
At that time, the investor said that the current legal framework of the condotel type has not been specifically regulated by the authorities; Real estate business activities of this type still have many shortcomings. Therefore, the project encountered many problems and the investor admitted his fault for not being able to pay profits to customers as committed.
Lam Vy