KUALA LUMPUR (June 5): After nearly a decade of delays in project execution, Berjaya Land Bhd (BLand) decided to call it a day. The property group is divesting its investment in a Vietnamese financial centre project at a loss.

In a filing today, BLand said it is selling off the entire 32.5% of total capital contribution in Berjaya Vietnam Financial Center Ltd (BVFC Ltd) to local firms Vinhomes Joint Stock Co and Can Gio Tourist City Corp for 884.93 billion Vietnamese Dong (RM154.86 million) cash.

BLand said a capital transfer agreement was signed between its subsidiary Berjaya Leisure (Cayman) Ltd (BLeisure Cayman) with the purchasers.

BLand’s capital contribution in BVFC Ltd originally amounted to 967.31 billion Vietnamese Dong. “The proposed disposal will result in an estimated loss of about RM25.1 million,” it said.

The multi-billion ringgit Berjaya Vietnam Financial Center (BVFC) project was licensed in 2008, but faced multiple hiccups which hindered the project from being executed.
The development, said BLand, would have comprised an office building, five-star hotel, service residences and shopping mall on a 6.64-hectare land located at 3/2 Street, District 10, Ho Chi Minh City, Vietnam.

However, BLand clarified that BVFC Ltd has not commenced operations.

“The consideration for the proposed disposal was arrived at on a willing buyer willing seller basis taking into consideration, amongst others, the business valuation, earnings potential and future prospects of BVFC,” it added.