KUALA LUMPUR (Aug 28): SkyWorld Development Bhd (KL:SKYWLD) will pay Perbadanan PR1MA Malaysia (PR1MA) RM32.17 million for the development rights to build 491 affordable housing units in Brickfields.

SkyWorld, through its wholly owned subsidiary Aspirasi Cekap Sdn Bhd (ACSB), received a letter of acceptance (LOA) from PR1MA on Wednesday to undertake the project.

A joint development agreement will be inked between ACSB and PR1MA within 60 days from the LOA or another date set by PR1MA.

PR1MA, an affordable housing agency under the Ministry of Housing and Local Government, will provide the land for the development. SkyWorld will finance and complete the project using its own funds.

Separately, SkyWorld posted a 76.21% decline in its net profit for the first quarter ended June 30, 2024 (1QFY2025) to RM9.99 million or one sen per share, from RM42 million or 7.92 sen a share a year earlier.

Revenue dropped 53.13% to RM98.81 million from RM210.82 million a year earlier, primarily due to the completion of projects which contributed RM157.9 million revenue in 1QFY2024. They are the SkySierra Residences (The Valley), SkyAwani IV Residences and SkyAwani V Residences.

This marks the group's lowest quarterly earnings since its listing on the Main Market in July 2023.

At end-June, the group reported cash and bank balances of RM515.28 million, compared to total borrowings of RM497.84 million.

Shares of SkyWorld closed down two sen or 3.74% at 51.5 sen on Wednesday, translating into a market capitalisation of RM510.23 million.