KUALA LUMPUR (Sept 9): Property developer SkyWorld Development Bhd (KL:SKYWLD) has signed a pact to buy land in Ho Chi Minh City, Vietnam, for about RM136 million.

The 2.33-acre site is earmarked for a high-rise residential tower integrated with commercial and service facilities, SkyWorld said in an exchange filing. The gross development value was not disclosed, though the company said the project comprises over 1,200 apartment units in a 40-storey tower.

Under the terms of the memorandum of understanding, SkyWorld will have three months to conduct due diligence and exclusively negotiate key terms of the proposed acquisition, including pricing, deal structure and other conditions.

The MoU was signed by SkyWorld Development (Vietnam) Company Ltd with MTV Vina An Thuan Phat Company Ltd and its sole shareholder Le Van Phong. An Thuan Phat is the legal investor of the project and has held land use rights granted by the Vietnamese government since Oct 8, 2004.

The pact serves as a framework for further discussions leading to the execution of definitive agreements for the development, SkyWorld said.

Located in Binh Duong Province, the site offers proximity to Lotte Mart, an international hospital and major industrial hubs including Vietnam Singapore Industrial Park, Tan Cang and Song Than. The location promises strong connectivity and lifestyle appeal for future residents, SkyWorld said.

“It presents an excellent opportunity for SkyWorld to kick-start its property development business in Binh Duong Province given that the project is on track for a swift launch”, and in line with its regional expansion plan, the company added.