Recently public listed SkyWorld Development has entered into a conditional shares sale and purchase agreement for the acquisition land located in Ward 16 District 8 Ho Chi Minh City for approximately RM67.9 million.
Upon completion of the proposed acquisition, the developer will have the lawful land use rights over the entire Project Land through the ownership of the Project Company
SkyWorld said the proposed acquisition is in line with its geographical expansion plan, by bringing its urban property development business model into Ho Chi Minh City, Vietnam. Vietnam is one of the most rapidly growing economies in Southeast Asia. For 2023, Vietnam expects a 5.3% growth in GDP amidst weak global demand and is expected to rebound to 6.2% by year 2024. Further, the State Bank of Vietnam has taken proactive measures by reducing interest rates by 4 times in first half 2023 to stabilize the market and spurs growth amidst the other countries in the world that are still hiking up their interest rate.
This continued effort by the State Bank of Vietnam will further incentivise potential buyers to grab the opportunity to own their own homes. Buoyed by these and other factors collectively present an appealing prospect for SkyWorld Development Group to venture into this thriving economic landscape.
The developer added the Project Land is located at an approximate distance of 12 km from the Central Business District 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. It is situated within an enclave of established low-rise and high-rise projects. The Project target is to be priced between VND50,000,000/m2 to VND70,000,000/m2 where believed will have a large captive market and achieve a favorable absorption rate. The estimated gross development value of the Project would be VND1,600,000,000,000 (equivalent to approximately RM310,400,000).
