SkyWorld buys 1.3-acre land in Ho Chi Minh City for RM68mil

KUALA LUMPUR: Skyworld Development Bhd’s wholly owned subsidiary, SkyWorld Development (Vietnam) Company Limited (SkyWorld Vietnam) has proposed to acquire 1.3 acres of land in Ho Chi Minh City, Vietnam for RM67.9mil cash.

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

In a filing with Bursa Malaysia, Skyworld said SkyWorld Vietnam entered into a conditional shares 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.

It 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, Vietnam and simultaneously, the vendors are in the midst of procuring the transfer of land use rights for another two adjourning lands 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 24-storey apartment building on the land.

“The proposed acquisition is in line with SkyWorld Development’s geographical expansion plan, by bringing its urban property development business model into Ho Chi Minh City, Vietnam,” SkyWorld said.

It said the land is located in District 8, Ho Chi Minh City, with an approximate distance of 12 km from the central business district (CBD) in District 1 and well connected to one of the major arterial roads (Vo Van Kiet Street) linking the west of the city to the CBD.

“The project is targeted to be priced between 50,000,000 and 70,000,000 Vietnamese dong/m2, where we believe it will have a large captive market and achieve a favourable absorption rate

“The estimated gross development value of the project would be approximately RM310.4mil,” it said.