SkyWorld acquires Penang land to kickstart RM13 bil affordable housing project

• The land, referred to as Parcel 1, is part of a larger 161.5-acre tract located in Bandar Cassia, Seberang Perai Selatan. The site will be developed into Rumah Bakat Baru Madani (RBB) homes, under a joint development agreement between SkyWorld, the Penang Development Corporation (PDC) and its subsidiary PDC Properties.

KUALA LUMPUR (July 8): SkyWorld Development Bhd (KL:SKYWLD) is acquiring a 25.9-acre parcel of land in Batu Kawan, Penang, for RM48.51 million as part of a previously announced joint development to build affordable housing units in the state.

The land, referred to as Parcel 1, is part of a larger 161.5-acre tract located in Bandar Cassia, Seberang Perai Selatan. The site will be developed into Rumah Bakat Baru Madani (RBB) homes, under a joint development agreement between SkyWorld, the Penang Development Corporation (PDC) and its subsidiary PDC Properties.

In a bourse filing on Tuesday, SkyWorld said its wholly owned subsidiary, SkyWorld Cassia Development Sdn Bhd, had entered into an agreement with PDC to acquire the land at RM43 per sq ft.

This acquisition follows shareholder approval for the proposed joint development secured at SkyWorld’s extraordinary general meeting in April 2025.

The RBB initiative, first announced in December 2024, targets middle-income households earning below RM11,800 a month, offering units priced between RM225,000 and RM420,000.

The units—which will include a swimming pool, gym, multipurpose hall and playground—will be open to both Penangites and non-residents working in the state.

The RM13 billion project spans two sites in Penang—a 34-acre tract in Seberang Jaya and the 161.5-acre Batu Kawan site—with Parcel 1 located near Jalan Cassia Barat 1, adjacent to the Design Village Outlet Mall.

SkyWorld said the purchase will be funded via a mix of internal funds, bank borrowings, and remaining proceeds from its initial public offering. The acquisition is expected to be completed by the second quarter of 2026.

On Tuesday, SkyWorld shares fell 0.5 sen or 1.14% to close at 43.5 sen, giving a market capitalisation of RM435 million. The stock has retreated over 22% so far this year.

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