Updated, Oct 4, 2017, 4:02 p.m., to change the consideration of US$25 million, as previously stated, to US$22 million.

Ocean Sky International is selling a parcel of freehold land in Cambodia to Greystone Investment and Luen Thai Holdings at US$22 million (about $29.95 million).

Owned by Ocean Sky’s subsidiary Suntex Investment, the property comprises an area of about 1.3 million sq ft and is located within Khan Por Senchey at Phnom Penh, Cambodia. According to Ocean Sky, the net lease income before income tax earned from the property in FY2016 was about US$690,000.

Ocean Sky estimates net proceeds from the proposed transaction to be approximately US$21.75 million, after taking into account professional fees incurred.

The company plans to use the net proceeds for future joint ventures and working capital, as well as property acquisition and development, so as to expand the group’s portfolio.