Owners of units at the Cocobay Da Nang condotel project, which have bought more than 50% of the projects inventory, have proposed to convert profits owed by Thanh Do Company into land or houses at Cocobay, according to a statement from Thanh Do.
At the end of November, Cocobay Da Nang announced that due to cashflow problems, the company was going to terminate the payment of committed profits of up to 12% each year that it had it had agreed to pay customers who invested in Cocobay project.
Since November, customers have received at least two formal notices from Cocobay about investor options. One of the options is to pay an additional 15% on the original price so that owners can transform their holdings from condotel apartments to condominiums.
Because the developer is asking for additional monies and refusing to pay the returns it promised investors in their contracts, investors have said they will not accept Cocobay’s proposal in its current form.
Solutions are under discussion between the group of 700 owners and Thanh Do, with representatives being Nguyen Hai Long and Mai Huy Tan, Chairman and Director of Vietnam-Germany Bridge Co, Ltd, who has invested up to VND600 billion in Cocobay Da Nang.
The 700 owners hold more than 50% of the total value of sold real estate products and own high-value assets such as Nam An villas, adjacent seven-story boutique hotels and hundreds of five-star apartments,
Nguyen Hai Long, an owner who has invested tens of billions of dong in Cocobay Da Nang, and represents the group of 700 owners said that, “If Thanh Do Company agrees and SHB Bank approves the plan, we will negotiate with Thanh Do Company on the price, conversion method and related legal issues. An independent evaluation unit, approved by SHB Bank, will objectively assess assets that Thanh Do can use for the conversion.”