YNH Property Bhd (YNH) has received approval for its amended development order for its flagship Menara YNH project from the Kuala Lumpur City Hall (DBKL).
Menara YNH has been conceptualised to be a hallmark mixed development consisting of serviced apartments, hotels, SOHO (shop-office home-office), offices as well as retail space strategically located within the Central Business District of Kuala Lumpur.
The freehold commercial land development will take up a land area of circa three acres with the gross development value (GDV) of the project estimated at RM3 bil.
“The approval of the amended development order and building plans for Menara YNH marks an important milestone for the Group as we can now focus on the sales of residential units to the market,” commented YNH Property’s chairman Datuk Dr Yu Kuan Chon.
“This is expected to contribute positively to the group’s future earnings as we strive to consistently grow shareholders’ value.”
Added Yu: “Being located in a ‘super prime’ area at the intersection of Jalan Ampang and Jalan Sultan Ismail, Menara YNH is envisioned to become a key landmark in Kuala Lumpur and one that is built with innovation and sustainability in mind with uninterrupted views of our beautiful KL city skyline.”
Yu further described the DBKL approval as timely given that as YNH plans to complete its proposed disposal of Kiara 163 Retail Park and AEON Seri Manjung soon.
“The proposed disposal will generate an infusion of RM422.5 mil in cash to the group, hence this will strengthen our balance sheet by enabling the group to acquire future funding required to kick-start the development of Menara YNH,” he explained.
YNH had earlier disclosed that the total consideration of RM422.5 mil for the proposed disposal of the two assets will be satisfied by ALX Asset Bhd entirely in cash through the issuance of the medium-term notes (MTNs) under a proposed asset-backed medium-term-notes (ABS MTN) programme of up to RM500 mil in nominal value.
The proposed disposals require approval from YNH’s shareholders at an extraordinary general meeting (EGM) to be convened on March 1.
YNH has disclosed that the proposed disposal and proposed ABS MTN Programme is a related party transaction and as such Yu as well as YNH Property managing director, Datuk Yu Kuan Huat have abstained and will continue to abstain from all board deliberations, meetings and on the resolutions pertaining to the proposed disposals.
At today’s mid-day trading break, YNH Property was down 4 sen or 0.84% to RM4.71 with 20,200 shares traded, thus valuing the company at RM2.49 bil. – Feb 24, 2023
