MAIN Market-listed tourism-related property developer Yong Tai Bhd has sealed a strategic joint venture (JV) agreement with Taghill Holdings Bhd through tie-ups between their wholly-owned subsidiaries YTB Impression Sdn Bhd and Taghill Land Sdn Bhd.
This collaboration grants Taghill Land exclusive rights to develop two blocks of serviced suites – collectively known as The Dawn @ Impression City Melaka – which is strategically situated in the heart of Melaka.
Under the JV agreement terms, Taghill Land will assume full responsibility for the planning, execution, management and marketing of The Dawn which comprises 648 units of serviced suites with an estimated gross development value (GDV) of RM183.31 mil.
In return, Yong Tai immediately unlocks RM28 mil, thus significantly enhancing its cash flow position without incurring further capital risks.
Located within Yong Tai’s premier integrated development in Melaka, The Dawn @ Impression City Melaka has already completed piling and a five-storey car park podium structure which provides Taghill Land with a ready platform to expedite construction.
The partnership project is expected to commence in 3Q 2025 with completion expected by 4Q 2027.
Development credentials
Beyond the immediate cash inflow, the JV also presents attractive upside potential for Yong Tai. Should the project’s pre-tax profit exceed RM11 mil (after deducting Yong Tai’s entitlement), Yong Tai will further benefit from a 40% share of any additional profits.
“This JV with Taghill Land represents a decisive step in enhancing Yong Tai’s financial strength and reducing our construction risk exposure,” commented Yong Tai’s CEO and executive director Datuk Wira Boo Kuang Loon.
“Taghill Land’s proven expertise in property construction ensures that The Dawn will be completed swiftly, hence allowing us to efficiently monetise our previous investments while positioning Yong Tai for sustainable long-term growth.”
Already recognised for its reliable construction and development credentials through previous successful collaborations with Yong Tai, Taghill Group is ideally suited to drive The Dawn project forward, thereby reducing the execution risks for Yong Tai significantly.
To-date, its successful undertakings include The Apple and Courtyard by Marriott Melaka hotel.
Moving forward, this strategic move further enables Yong Tai to sharpen its focus and allocate resources towards core flagship projects that include the Impression U-Thant development in Kuala Lumpur and the Encore Melaka theatre, both of which continue to show strong traction post-pandemic.
As it is, Melaka’s robust tourism recovery which is bolstered by enhanced connectivity initiatives such as new Scoot Airline flights and Genting Dream Cruise voyages from Singapore has continued to support strong demand for property and hospitality developments in the region.
At the close of today’s (Aug 8) market trading, Yong Tai was down 0.5 sen or 3.57% to 13.5 sen with 494,600 shares traded, thus valuing the company at RM58 mil. – April 8, 2025
