SkyWorld to launch 10 new projects worth RM4bil

PETALING JAYA: SkyWorld Development Bhd, which has launched 13 grand-scale projects to-date, plans to launch 10 new developments between the second half of 2023 and 2026 with a combined gross development value (GDV) of RM4.08bil.

SkyWorld currently has a landbank of about 55.66 acres, of which 37.17 acres have been set aside for the 10 planned developments.

“We are actually in the midst of submitting development orders for tapping the balance 18.49 acres of land,” chief executive officer Lee Chee Seng said at a press conference in conjunction with its listing ceremony on Bursa Malaysia yesterday.

The stock ended its maiden trading day six sen lower than its offer price of 80 sen a share after hitting a high of 81 sen and low of 73 sen in intraday trading.

SkyWorld was the most actively traded counter on the exchange yesterday with 110 million shares being traded.

Meanwhile, asked about the property market sentiment, SkyWorld’s founder and non-independent executive chairman Datuk Seri Ng Thien Phing said there was still demand for quality products and hence, he believes SkyWorld’s property launches will do well.

Ng emphasised that SkyWorld was a full- fledged property developer serving the demand for a range of affordable homes to luxury residential properties.

“If the market condition is good, we might launch our premium series. Going forward, we will strive to maintain a balanced portfolio by focusing on the construction of both affordable developments and regular developments,” Ng said.

On the possibility of expanding to other states in Malaysia, Ng said if there was a significant development opportunity, the group would consider it but not for smaller developments which require better resource planning.

“So, when we want to pursue a new market, we have to ensure the market is sustainable. For example, an opportunity for development of between RM3bil and RM5bil, that would be able to last us for at least 10 years,” he explained.

SkyWorld aims to utilise its initial public offering (IPO) proceeds of RM166.4mil to drive its future expansion plans.

Of the entire IPO proceeds, RM100mil or 60.1% has been earmarked for land acquisition for development, while another 21.2% will be utilised as working capital for project development.

Meanwhile, 12% of the proceeds will be allocated for the repayment of bank borrowings.

The remaining 6.7% of the proceeds will be used to pay for IPO-related expenses. The company also intends to declare a yearly dividend equivalent to 20% of its annual earnings.

SkyWorld has completed seven developments within Kuala Lumpur, with a combined GDV of RM3.05bil, and is currently involved in six ongoing developments with a projected combined GDV of RM2.85bil.