How does the owner of Vietcombank Tower located in prime District 1 make a lot of money?

Vietcombank Tower is a Grade A office building with a prime location, right next to Me Linh Square and overlooking the Saigon River - Photo: DN Website

Vietcombank's annual report said that Vietcombank - Bonday - Ben Thanh Joint Venture Company Limited (VBB) is a joint venture between the bank, Ho Chi Minh City Commercial Services Joint Stock Company (Setra Corp) and partner Bonday Investments Ltd. (Hong Kong).

The capital contribution ratio of the three "big guys" when joining hands to build the joint venture: Vietcombank 52% (equivalent to 410.36 billion VND); Setra Corp 18% and Bonday Investments Ltd. 30%.

In which, Setra Corp is an enterprise in Ms. Truong My Lan's ecosystem and is assigned to hold capital contribution in this joint venture.

Setra Corp is also one of four legal entities that committed fraud, violating the law by creating 25 bond packages with a total value of more than 30,000 billion VND to sell to buyers (bondholders), raising money and appropriating.

Returning to VBB, Vietcombank's annual report introduces this joint venture operating in the field of office building leasing at Vietcombank building.

This tower is located at 5 Me Linh Square, District 1, Ho Chi Minh City. In addition to leasing, the project also meets the demand for office space for Vietcombank branches and subsidiaries in Ho Chi Minh City.

In 2015, Vietcombank Tower was officially put into operation and by the end of that year, 85% of the building's area had been leased.

In 2016, the company recorded its first profitable year, with pre-tax profit reaching VND105.1 billion, exceeding the set plan by 210%.

	Profit after tax
2016	105.1
2017	135.56
2018	128.97
2019	146.04
2020	194.33
2021	191.77
2022	183
2023	220.75

Latest data in 2023, Vietcombank building has a rental rate of 96.5%, pre-tax profit reached 220.75 billion VND in 2023.

Source: https://tuoitre.vn/chu-toa-thap-vietcombank-toa-lac-dat-vang-quan-1-kiem-bon-tien-ra-sao-20240821170310009.htm