SkyWorld Development Berhad (“SkyWorld” or the “Company”) an urban property developer principally involved in investment holding, provision of management services to its subsidiaries and property development, today announced that its wholly-owned subsidiary SkyWorld Development (Vietnam) Company Limited has entered into a conditional share sale and purchase agreement to acquire approximately 1.3 acres of land located at Ward 16, District 8, Ho Chi Minh City, Vietnam (“Land”) through the acquisition of a Vietnamese company, Thuan Thanh Trading Production and Real Estate Trading Joint Stock Company (“Project Company).
The acquisition will be entirely satisfied in cash, with a total cash consideration of RM67,900,000). Upon completion, the Project Company will become an indirect wholly-owned subsidiary of SkyWorld. The acquisition, which is expected to be completed by the fourth 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.
With this acquisition, SkyWorld Vietnam proposes to implement a project comprising a 24-storey residential apartment building over the Land. SkyWorld founder and non-independent executive chairman Datuk Seri Ng Thien Phing said, “We are thrilled to announce that SkyWorld is embarking on its maiden venture into Vietnam. This is a key milestone in SkyWorld’s history as it is our first venture overseas. Since our listing in July, we have consistently reiterated that our goal is to penetrate into Vietnam, especially since we have invested countless hours analysing the Vietnamese housing market. The trend of urbanisation in Vietnam remains strong and SkyWorld is in a good position to benefit from it. The strategic location of the land in Ho Chi Minh City makes it an ideal canvas for our innovative and sustainable projects and we are looking forward to developing a 24-storey residential apartment over the said land. We are confident that this investment will not only contribute positively to the future earnings of SkyWorld but also to the local economy.”