KUALA LUMPUR (Aug 30): Property developer SkyWorld Development Bhd (KL:SKYWLD) has proposed to jointly develop a property in Vietnam's  Binh Duong Province, its  second venture in that country.

The group said its wholly-owned unit, SkyWorld Development (Vietnam) Company Ltd, has entered into a memorandum of understanding (MOU) with SkyVenue Land Group Joint Stock Company, SkyBridge Company Ltd and the shareholders of SkyVenue to jointly develop the remaining plots of the Guocoland Commercial Complex project in Thuan An City.

SkyBridge is a unit of SkyVenue, which has been duly registered to implement the project and has already secured the land use rights.

"The collaboration entails the acquisition of up to 49% of SkyVenue shares from its shareholders," said SkyWorld in a statement on Friday. "Upon the completion of the due diligence, SkyWorld Vietnam shall decide on whether to proceed with the collaboration."

Under the deal, SkyWorld Vietnam will co-develop two residential plots, along with a mixed-use tower and a hotel and serviced apartment complex on two additional plots.

"With the masterplan expected to be approved by the fourth quarter of 2024, SkyWorld Vietnam is poised to launch the development swiftly," said SkyWorld. 

The group's first venture in Vietnam involved the acquisition of 1.3 acres of land in Ho Chi Minh City in September 2023, for RM67.9million, cash.

“As our first foray out of the country, our team diligently navigated the Vietnamese market, and this project reflects our ability to leverage opportunities in this promising region,” said SkyWorld Development founder and non-independent executive chairman Datuk Seri Ng Thien Phing.

SkyWorld’s share price closed down 0.5 sen or 1% to 51 sen, bringing the group a market capitalisation of RM510 million.  The counter has fallen 36% from its initial public offering price of 80 sen in July 2023.