South Korea’s Lotte Engineering & Construction Co. will oversee a new town development project in Ho Chi Minh City in Vietnam in cooperation with Vietnamese property developer Novaland Group.

Lotte E&C announced Tuesday that it signed a strategic partnership with Novaland at the group headquarters in Ho Chi Minh City on May 8 to jointly build apartment complexes and carry out urban development project for the city and its surrounding areas. Financial terms were undisclosed.

Novaland that was founded in 1992 plans to provide total 6,500 houses this year. It was reported that the property developer picked Lotte E&C as its business partner in recognition of its ample experience in constructing upscale apartment complex and contribution to investment projects in the Southeast Asian country.

In February, Lotte E&C set up Lotte Land, its Vietnamese subsidiary, to ramp up its real estate development projects in Hanoi and Ho Chi Minh.

Lotte E&C will conduct total five projects – three projects for residence construction and two for urban development. It will build three 38-story buildings with four underground floors that will sit on an area of 14,000 square meters in District 1 of Ho Chi Minh City. The Grand Manhattan complex will house commercial facilities on the first and second floors, a business hotel from the third to seventh floor and luxurious residential areas on the rest.

“The project will serve as an opportunity to take our Vietnamese operation to the next level through cooperation with Novaland, one of the leading real estate developers in the country,” said Han Yong-soo, head of overseas sales division at Lotte E&C.

By Chu Dong-hoon and Choi Mira

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