YNH Property had announced that D’Kiara Place Sdn Bhd, a wholly-owned subsidiary of the Company entered into a Sale and Purchase Agreement with RHB Trustees Berhad on behalf of Sunway REIT for the disposal of a seven-storey retail shopping centre known as “163 Retail Park” for a total cash consideration of RM215.0 million.
D’Kiara Place is a wholly-owned subsidiary of the Company. The principal activity of D’Kiara Place is property development and provision of consultancy services. 163 Retail Park is a stratified 7-storey retail shopping centre located on 226,860 square feet (“sq ft”) freehold land at Mont Kiara, Kuala Lumpur. 163 Retail Park is part of a mixed integrated freehold development (namely Kiara 163) comprising an office tower, a serviced apartment tower and hotel suite tower which is developed by YNH.
163 Retail Park was completed in December 2018 and has a tenant mix of businesses comprising grocers, food & beverage outlets, speciality outlets, health & beauty and kids edutainment. Jaya Grocer is the main anchor tenant of 163 Retail Park.
The group said the proposed disposal represents an opportunity to unlock the value of and monetise its investments in the property. YNH is expected to record a pro forma net loss of approximately RM12,040,431 after accounting for the reversal of deferred tax, which is no longer required as there is no capital gain tax applicable for disposal of Property, from the
It said the disposal will also enable it to raise proceeds of RM215.0 million to be utilised for the purpose as set out in Section 7 of this announcement which includes for the redemption of the Property, working capital of YNH and repayment of borrowings for its group of companies.
The utilisation of the said proceeds is expected to contribute positively to the future cash flow of the Group when it materialises.