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

The Carina Plaza apartment building with the name of  五 七 七 Investment Corp on the top of the building. — Photo news.zing.vn

HÀ NỘI — Real estate and construction firm  五 七 七 Investment Corporation has lost VNĐ 六 一 四. 七 billion (US$ 二 七. 三 million) in market capitalisation following the fire at Carina Plaza in HCM City on March  二 三.

The corporation has listed more than  九 七. 五 million shares on the HCM Stock Exchange, and its shares have lost nearly  二 五. 五 per cent in the last five trading sessions to close Thursday at VNĐ 一 九,000 per share.

Its shares started to decline on March  二 三, when a fire broke out at a building of Carina Plaza early on the day, killing  一 三 residents and injuring  九0 others.

Carina Plaza was constructed by contractor Hùng Thanh Construction-Trading-Services-Production Co Ltd, in which  五 七 七 Investment Corp holds a  九 五 per cent stake.

On March  二 六,  五 七 七 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,  五 七 七 Investment Corp. said although it held  九 五 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  二 九, 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  二 九. — VNS