Daewoo Engineering & Construction said Monday it has agreed with South Korean financial institutions to jointly invest in the construction of a new town project in the center of Hanoi, Vietnam.

According to Daewoo E&C, it signed an investment development contract worth $388 million with the Korea Development Bank and other Korean financial institutions on Jan. 20, to construct buildings, including a hotel, and residential and commercial buildings, inside Starlake City in Hanoi.

This is the first time Korean financial institutes have invested in a large real estate project in Vietnam.

The companies will create a fund and establish a special purpose company to carry out the project.

The plans involve building two multipurpose, 35-story buildings, with construction expected to be completed in 2024. Korean hotel chain Hotel Shilla will be responsible for operations of the envisioned hotel.

Starlake is a Korean-style urban town introduced by Daewoo E&C in 1996.

By Jo He-rim (herim@heraldcorp.com)