Real estate corp 577 loses US$27m after Carina Plaza fire

Real estate and construction firm 577 Investment Corporation has lost VNĐ614.7 billion (US$27.3 million) in market capitalization following the fire at Carina Plaza in HCM City on March 23.

The corporation has listed more than 97.5 million shares on the HCM Stock Exchange, and its shares have lost nearly 25.5 per cent in the last five trading sessions to close Thursday at VNĐ19,000 per share.

Its shares started to decline on March 23, when a fire broke out at a building of Carina Plaza early on the day, killing 13 residents and injuring 90 others.

Carina Plaza was constructed by contractor Hùng Thanh Construction-Trading-Services-Production Co Ltd, in which 577 Investment Corp holds a 95 per cent stake.

On March 26, 577 Investment Corp. sent a filing to the HCM Stock Exchange, in which it said the two companies had worked out with the city authorities to support the families of the apartment building and investigate the cause of the fire.

Regarding its relationship with Hùng Thanh company, 577 Investment Corp. said although it held 95 per cent stake at the company, the contractor was an independent legal entity and was the sole contractor of Carina Plaza.

“The responsibilities, obligations and interests of the stakeholders in the fire case will be determined by legal enforcement,” the company said in its statement.

On March 29, HCM City Police Department reported that an apartment building at the Plaza was set on fire after a motorbike in the basement parking caught fire. No security staff was present to control the situation.

All emergency doors were open, and the fire alarm system (water sprinklers) was not functional, according to the city’s police department.

The department had invited the director of Hùng Thanh company to co-work on the case. The director refused citing poor health.

The department decided to initiate an official investigation into the case on March 29. — VNS

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