YNH announced that Kar Sin Bhd a wholly-owned subsidiary of the Company had entered into a Development Agreement with New York Empire Sdn Bhd and Chin Hin Property (Segambut) Sdn Bhd, for granting the Development Rights to the Developer to implement and complete the development of all that parcel of freehold land in Kepong.
The land is measuring approximately 26,253.121 square metres (6.49 acres) and is proposed to be turned into a residential development.
The agreement, involves the granting of Development Rights with Guaranteed Beneficiary Owner’s Entitlement of RM52.0 million and Additional Beneficiary Owner’s Entitlement which allows the company to quickly generate cash or capital from the land without engaging in the development process.
The total entitlement is expected to contribute positively to the future cash flow of the group when it materialises. YNH said the deal also serves as a risk mitigation strategy as developing land can be a complex and capital-intensive process with various risks such as construction delays, cost overruns, and market uncertainties. By granting the Development Rights, it transfers some of these risks by reducing its own exposure
The Company acquired the Land from NYESB on 30 September 2007 for a total cash consideration of RM23.0 million.
The Project is estimated to have gross development value of RM685.1 million and gross development cost of approximately RM575 million. The Project is expected to commence in July 2025 and is expected to complete in June 2030.
