YNH Property Berhad (YNH Property) has agreed to dispose of a 2.61-acre freehold commercial development site in Kuala Lumpur to Chin Hin Group Property subsidiary for RM455 million.
The company said its wholly owned subsidiary, YNH Land Sdn. Bhd., had entered into a conditional sale and purchase agreement with Chin Hin Property (JSI) Sdn. Bhd. (CHPJSI), a 70%-owned subsidiary of Chin Hin Group Property, for the disposal.
The land, held under Geran 75552, Lot 20002, Section 57 in Kuala Lumpur, measures approximately 113,710 sq ft, or 2.61 acres, and will be sold on an “as is where is” basis with vacant possession upon completion.
The RM455 million purchase consideration will be settled through a combination of RM409.48 million in cash, RM45.5 million worth of redeemable preference shares (RPS) in CHPJSI, and RM25,000 through the issuance of 25,000 ordinary shares in the company.
Following completion of the acquisition, CHPJSI intends to redevelop the site into a mixed-use project comprising serviced apartments, a hotel and retail components.
Based on preliminary plans, the proposed development carries an estimated gross development value (GDV) of RM3.6 billion and an estimated total development cost (TDC) of RM2.72 billion, subject to final planning approvals.
The project is expected to be funded through a combination of internally generated funds and bank borrowings.
YNH Property said the disposal forms part of its strategy to unlock the value of the land while improving the group’s financial position through the recognition of disposal gains.
A substantial portion of the cash proceeds will be used to redeem and discharge perpetual securities secured against the land, allowing the group to release the security, reduce exposure to higher coupon obligations attached to the perpetual securities and improve liquidity.
