SkyWorld inks MOU to explore joint development of residential project in Vietnam with landowner

• The group has, via its wholly owned SkyWorld Development (Vietnam) Co Ltd (SkyWorld Vietnam), inked a memorandum of understanding (MOU) with Dong Me Kong Construction Manufacture Trading Service Co Ltd (DMK) and Phu My Development Investment Joint Stock Company (PM) for the purpose.

KUALA LUMPUR (April 11): SkyWorld Development Bhd (KL:SKYWLD) is exploring the joint development of a residential project in Ho Chi Minh City, Vietnam, with the landowner.

The group has, via its wholly owned SkyWorld Development (Vietnam) Co Ltd (SkyWorld Vietnam), inked a memorandum of understanding (MOU) with Dong Me Kong Construction Manufacture Trading Service Co Ltd (DMK) and Phu My Development Investment Joint Stock Company (PM) for the purpose. PM is a wholly owned unit of DMK, and the current landholder of the project site.

According to SkyWorld in a bourse filing on Friday, the residential project is to be developed on land measuring 117,890 sq m. Situated in the Binh Chanh district, it will include high-rise apartments, low-rise linked houses, shophouses, and villas, developed across five designated plots.

Under the agreement, SkyWorld Vietnam will be granted an exclusive three-month negotiation period — which may be extended — to finalise a conditional joint development agreement with the Vietnamese firms for the project.

SkyWorld Vietnam will also need to deposit 40 billion dong (RM6.92 million) into a jointly controlled escrow account within seven days of the MOU. This deposit will remain in escrow until the depository — DMK and PM — secures a 440 billion dong (RM76.1 million) bank guarantee and approval from Vietnam's Ministry of Finance for the joint development.

Should the joint development agreement not materialise, the deposit will be refunded within seven days, and the exclusivity period terminated.

“The MOU allows SkyWorld Vietnam and the depository to lay the foundation of negotiation terms of the conditional joint development agreement to be entered in good faith and mutual cooperation to jointly develop the 13D project (residential project),” SkyWorld said.

“It presents an excellent opportunity for strategic collaboration with the depository for SkyWorld to expand its property development business in Vietnam,” it added.

Shares of SkyWorld closed half a sen or 1.25% higher at 40.5 sen on Friday, giving the company a market capitalisation of RM399.81 million.

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