SkyWorld bolsters presence in Vietnam with real estate acquisition

Invest Global 08:46 12/09/2023

Malaysia's premier urban property developer has made a key inroad into Vietnamese real estate.

SkyWorld Development Berhad, Malaysia's premier urban property developer, on September 7 made a noteworthy inroad into the Vietnamese real estate sector by securing full ownership of Thuan Thanh Production, Commercial and Real Estate Business JSC.

SkyWorld bolsters presence in Vietnam with real estate acquisition

The transaction, settled at approximately VND350 billion ($14.8 million), marks SkyWorld's maiden acquisition in Vietnam, building on their legacy of strategically positioned ventures.

According to the announcement, Thuan Thanh is the sole lawful occupier of a plot in Ward 16, District 8 of Ho Chi Minh City. This 2,060-square-metre parcel, presently mortgaged with LPBank (formerly known as LienVietPostBank) in Ho Chi Minh City, signifies a focal point for SkyWorld's future endeavours in the region.

Moreover, Thuan Thanh is actively involved in bidding for the land-use rights of two adjacent plots owned by different private entities. Upon successful completion of the aforementioned acquisition, SkyWorld Vietnam, the subsidiary, will gain lawful land-use rights over these areas through Thuan Thanh.

The purchase includes two parcels measuring 1,026-square-metres and 64-square-metres respectively, owned by Nguyen Vinh Tam and Le Thi Hoang Dung.

There are also three additional plots, belonging to Nguyen Son Hai Long, which cover 850-sq.m, 447-sq.m, and 183-sq.m respectively; these are currently under mortgage with Vietinbank's Thu Thiem Branch.

In total, the plots aggregated in SkyWorld's documentation span over 4,630sq.m. Thuan Thanh’s intention is to deploy a 24-storey residential project across 5,206.7sq.m.

The share purchase agreement was consummated between SkyWorld, real estate firm Thuan Thanh, and its three major shareholders: Nguyen Son Hai Long, who holds a 60 per cent stake, Nguyen Thuy Thoai Phuong, with 30 per cent ownership and the company's directorship, and Nguyen Thuy Diem Phuong.

One of SkyWorld's stipulations is the swift clearance of the entryway to the project and the demolition of an existing wall, inclusive of the fence built upon it, which separates the project from Carina apartments.

This acquisition is congruent with SkyWorld Development's expansion blueprints on transplanting their urban property development model into Ho Chi Minh City.

Situated approximately 12km from District 1's commercial hub, this land holds a strategic advantage, linking the city's west to its core via the pivotal Vo Van Kiet Highway.

SkyWorld forecasts apartment pricing within this venture to oscillate between $2,109 to $2,953 per sq.m, estimating the project's total developmental value at around $67.5 million.

Reflecting on SkyWorld's flourishing financials, founder Datuk Seri Ng Thien Ping remarked in July, "Closing the financial year 2023, I'm profoundly proud to declare SkyWorld's unparalleled fiscal zenith. We have eclipsed all prior records, registering the company's highest ever revenue and net profit. Furthermore, our return on equity remained robust at 27.9 per cent in 2023."

The Vietnamese real estate market, in the first half of the year, has witnessed several significant merger and acquisition activities. Preceding SkyWorld's move, in July, Malaysia's Gamuda Land, via Gamuda Berhad, announced its investment to acquire a stake in Vietnam's Tam Luc Real Estate Group, targeting a spacious 3.6-hectare project.

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By Trung Duong