PETALING JAYA: SkyWorld Development Bhd is seeking to develop a 24-storey residential apartment in Vietnam, marking its first overseas venture, to ride on the urbanisation in Vietnam.

Yesterday, the property developer’s wholly-owned subsidiary SkyWorld Development (Vietnam) Co Ltd (SkyWorld Vietnam) proposed to acquire 1.3 acres of land in Ho Chi Minh City for RM67.9mil cash to facilitate the afore-mentioned development.

The developer, which was listed in July 2023, said it acquired the land by way of purchasing a 100% stake or 1.7 million shares of 100,000 dong in Thuan Thanh Trading Production and Real Estate Trading Joint Stock Co (the project company) for 350 billion dong or RM67.9mil.

The move comes as SkyWorld Vietnam entered into a conditional share sale and purchase agreement with the project company and its three shareholders, namely, Nguyen Son Hai Long, Nguyen Thuy Thoai Phuong and Nguyen Thuy Diem Phuong.

SkyWorld, in a statement, said the project company will become an indirect wholly-owned subsidiary of SkyWorld upon completion of the transaction.

The acquisition, expected to be completed by the final quarter of 2024, will be funded through a mix of internally generated funds, bank borrowings and/or issuance of Islamic commercial papers and/or Islamic medium-term notes, it added.

Meanwhile, in a filing with Bursa Malaysia, SkyWorld said the project company is the sole and lawful user of a parcel of land located at Ward 16, District 8, Ho Chi Minh City.

Simultaneously, it said the vendors were in the midst of procuring the transfer of land use rights for another two adjourning plots of land owned by several individuals to the project company.

“Upon completion of the proposed acquisition, SkyWorld Vietnam will have the lawful land use rights over the entire project land through the ownership of the project company,” SkyWorld said.

The project company is currently carrying out relevant legal procedures to register and implement a project comprising a 24-storey apartment building on the land.

SkyWorld founder and executive chairman Datuk Seri Ng Thien Phing highlighted that since going public, the group has consistently reiterated its goal to penetrate into Vietnam.

According to SkyWorld, the land is located approximately 12km from the central business district (CBD) in District 1 and is well connected to one of the major arterial roads, Vo Van Kiet Street, linking the west of the city to the CBD.

SkyWorld said the project is expected to have an estimated gross development value of RM310.4mil. “The project is targeted to be priced between 50 million and 70 million dong per sq metre, where we believe it will have a large captive market and achieve a favourable absorption rate.”

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