Saigon Glory, the investor of the One Central HCM project in the Ben Thanh quadrangle, lost more than VND150 billion last year due to great debt repayment pressure.
According to the latest information disclosure table, Saigon Glory Company Limited lost more than 152 billion VND after tax. Meanwhile, in 2021, this enterprise still recorded more than 290 billion VND in profit after tax.
Loss-making business caused Saigon Glory's equity to decrease from nearly VND7,000 billion to over VND6,847 billion. Last year, this enterprise continued to increase its financial leverage when the debt-to-equity ratio increased nearly 4 times. The total debt of the investor of the One Central HCM project was over VND27,300 billion, an increase of about VND1,200 billion after one year.
In the debt structure, bonds account for more than 36%. The total outstanding debt through this channel is recorded at more than VND 9,997 billion, a slight decrease compared to 2021. Saigon Glory is circulating 10 bond lots, previously issued from June to August 2020. These bond lots all have an interest rate of 11% in the first year, and the following years will not be lower than 11% per year. Last year alone, the company spent more than VND 1,100 billion to pay interest.
Half of the bonds will mature in August 2025. But the remaining VND5 trillion will mature in June-July this year.
Last October, Saigon Glory committed to buy back all its bonds in two phases. The bonds maturing in 2023 will be bought back before June 12. But to date, the company has not announced any bond buybacks on the Hanoi Stock Exchange (HNX). For the remaining bonds, the company committed to buying them back before June 12, 2024.
Location of the "super project" One Central HCM opposite Ben Thanh market (the project is on the left of the photo). Photo: Quynh Tran
Saigon Glory was established in June 2018, with initial charter capital of VND7,000 billion. Bitexco Group Limited (Bitexco Group) holds all the capital. This enterprise is known as the investor of the 8,600 m2 complex project in the Ben Thanh quadrangle, opposite Ben Thanh market (District 1, Ho Chi Minh City).
The project consists of two towers connected by a podium. The 55-storey West Tower includes office floors for rent in the lower half and a hotel in the upper half. The 48-storey East Tower includes apartments, with services provided by the hotel through the connection of the podium and basement. The initial investment capital was announced at 500 million USD, making it one of the "mega projects" in the real estate market.
The predecessor of this project is The Spirit of Saigon, invested by Bitexco Group. After constructing the basement in phase 2012-2013, the project stopped construction. By mid-2020, The Spirit of Saigon was restarted and construction of the tower floors began. This was also the time when Saigon Glory continuously raised capital through the bond channel.
However, in early 2021, the project changed to Masterise Homes development with a new name One Central HCM. The project continued to build a few more floors.
By August 2022, Viva Land replaced Masterise Homes and changed the project name to Pearl. But by November, this name suddenly disappeared and the project continued to be "shelved" until now.
Siddhartha
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