Kuala Lumpur: SkyWorld Development Bhd’s wholly owned subsidiary, Rimba Maju Realiti Sdn Bhd (RMRSB), is set to acquire a 1.23-hectare parcel of freehold land at Tempat Sungei Teba, Mukim Batu, Kuala Lumpur. The acquisition, valued at RM110 million, will be from MS Tan Corporation Sdn Bhd.

According to BERNAMA News Agency, the developer announced that this purchase aligns with SkyWorld Development’s initiative to expand its urban property development business within the Klang Valley. The company’s strategy involves accumulating suitable land to fortify its landbank and enhance its development capabilities.

The acquisition will be financed through a combination of internally generated funds, proceeds from an initial public offering in 2023, and/or bank borrowings. SkyWorld Development indicated that the exact funding mix will be finalized after assessing the group’s gearing level, interest costs, and working capital requirements.

SkyWorld also revealed that RMRSB intends to develop a high-end residential project on the newly acquired land, focusing on providing an exclusive living environment equipped with modern amenities. The transaction is expected to conclude within nine months from the date of the sale and purchase agreement.

Lee Chee Seng, SkyWorld Development’s chief executive officer, emphasized that the acquisition is part of the company’s strategic focus to broaden its urban development presence and diversify its product offerings. Lee noted that this move marks the company’s entry into the premium segment, complementing its existing affordable SkyAwani and mid-range SkySignature series.

This strategic acquisition not only supports SkyWorld Development’s long-term growth objectives but also positions the company to leverage the evolving demand for quality urban living in the Klang Valley. Following this purchase, SkyWorld Development’s total land bank stands at 103.09 hectares, with 102.57 hectares located in Malaysia.