Phat Dat (PDR) and Lotte Break Ground on VND 60,000B Thu Thiem Project

Overview

Lotte Group and Phat Dat Real Estate Development (HOSE: PDR) officially broke ground on 23 October on the Lotte Eco Smart City Thu Thiem project in Ho Chi Minh City, a mixed-use development with total investment of about VND 60,000 billion (roughly USD 2.4 billion). PDR holds a 35% charter-capital stake in the project company, Lotte Properties HCMC Co., Ltd., and MB Bank is financing PDR’s full equity contribution. The project sits in the Thu Thiem new urban area, planned as Ho Chi Minh City’s new financial and commercial centre.

Key Facts

• Total investment: approximately VND 60,000 billion (about USD 2.4 billion), per the 23 October groundbreaking announcement.
• PDR ownership: 35% of charter capital in Lotte Properties HCMC Co., Ltd., per Ho Chi Minh City People’s Committee Decision No. 4102/QD-UBND dated 3 July 2026.
• Site area: nearly 7.5 hectares across six adjacent plots (2-1 to 2-6) in functional zone 2A, now An Khanh ward, Ho Chi Minh City.
• PDR’s construction scope: towers 2-1 and 2-3 plus a four-storey retail podium and basements, about 219,722 sqm of gross floor area, and co-development of residential blocks 2-2, 2-4 and 2-6.
• Lotte develops the high-rise portion of block 2-5; the joint venture includes Lotte Shopping, Hotel Lotte and Lotte Engineering & Construction.
• Land-use fee of VND 17,569 billion was paid into the state budget on 31 July 2026, according to the project company.
• Financing banks: Military Commercial Joint Stock Bank (MB), Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV).

What Happened

The groundbreaking was announced by the Lotte Group and Phat Dat joint venture on the morning of 23 October. The project is developed by Lotte Properties HCMC Co., Ltd., whose investors are three Lotte Group entities — Lotte Shopping Co., Ltd., Hotel Lotte Co., Ltd. and Lotte Engineering & Construction Co., Ltd. — alongside PDR. The 35% PDR stake is documented in a Ho Chi Minh City People’s Committee decision dated 3 July 2026.

Under the development structure, PDR co-develops the residential components in blocks 2-2, 2-4 and 2-6 and takes full responsibility for towers 2-1 and 2-3, which combine commercial services and offices, together with a four-storey retail podium and basement levels. Lotte is responsible for the high-rise portion of block 2-5. The project company said it completed payment of the VND 17,569 billion land-use fee on 31 July 2026. MB Bank is described as funding the entirety of PDR’s participating capital in the project.

Market Context

PDR closed at VND 12,050 on 22 October 2026 on HOSE, a modest level relative to the sector’s larger capitalised names and consistent with a stock that has traded on execution and balance-sheet concerns in recent years. The financing banks are listed: MB (MBB) closed at VND 19,900 and VietinBank (CTG) at VND 30,550 on 22 October, while BIDV (BID) closed at VND 34 on 23 October, up 0.15% on volume of 345,500 shares. The announcement lands as Ho Chi Minh City pushes to establish Thu Thiem as a financial hub, a theme that has supported real estate and bank sentiment around large-scale infrastructure and urban projects.

Strategic Significance

For PDR, the project converts a long-standing land bank in Thu Thiem into a visible, funded development pipeline with an international partner, and the MB financing removes the immediate question of how PDR funds its 35% share. The 219,722 sqm PDR is directly building, plus its co-development role in three residential blocks, gives it recurring development revenue rather than a pure land-sale outcome. For the banks, MB’s full sponsorship of PDR’s contribution deepens a relationship that ties lender exposure to project completion, while VietinBank and BIDV gain participation in one of the largest single projects in the city’s new centre. The land-use fee already paid reduces a key regulatory overhang that has delayed comparable Thu Thiem projects.

What to Watch

• Disbursement schedule and loan terms from MB for PDR’s 35% contribution, and whether syndication with VietinBank and BIDV is disclosed.
• Construction milestones for towers 2-1 and 2-3, including contractor awards and expected handover dates.
• PDR’s quarterly filings for capitalisation of the project and any change to its 35% stake.
• Pre-sales or leasing terms for the residential and office components, which will indicate achievable pricing in Thu Thiem.
• Any further Ho Chi Minh City People’s Committee decisions on the project’s planning or land-use adjustments.