Mai Vien Real Estate, a subsidiary of the Cantavil Group, experienced remarkable growth in profitability last year. The company’s after-tax profit reached over 213 billion VND, representing a 14-fold increase from the previous year. Mai Vien Real Estate’s equity increased by 65% to nearly 543 billion VND, while liabilities increased by just 0.9% to about 814 billion VND. This led to a debt-to-capital ratio of roughly 1.5 times, which is considered low in the real estate industry.
Mai Vien Real Estate’s success can be attributed to its ability to generate profits for two consecutive years, with an average daily earnings of approximately 580 million VND. In addition, the company issued a bond worth 600 billion VND in 2021 with an interest rate of 11.5% per year. Despite paying out nearly 69 billion VND in interest on this mobilization last year without any late payments reported by the Hanoi Stock Exchange (HNX), Mai Vien Real Estate was able to maintain its financial stability.
Cantavil Premier, located in Ho Chi Minh City, has been operating for ten years and has attracted well-known tenants such as Big C supermarket and Xiaomi technology company. Ms. Nguyen Thao Phuong, the director and legal representative of MVJ, also holds the same position at Fusion Suites Saigon Hotel in District One. The hotel is used as collateral for Mai Vien Real Estate’s bond issuance of 600 billion VND.
The strong profits of Mai Vien Real Estate reflect positive trends in the shopping center segment. According to CBRE, rental prices in retail real estate in Hanoi and Ho Chi Minh City saw an increase last year, with average rental prices in Ho Chi Minh City reaching nearly $240 USD per square meter per month. Demand for retail space from foreign brands is increasing while supply remains limited, leading to nearly full occupancy in inner-city shopping centers.
Overall, Mai Vien Real Estate’s success in the real estate market combined with positive trends in the retail sector indicate a strong and profitable future for the company.
