Yong Tai inks several agreements for the Encore Melaka with travel agents; financing agreement with the Bank of China and heads of agreement with Kirin Financial Group Ltd.
KUALA LUMPUR: Yong Tai Bhd
's Impression Series of Encore Melaka theatre – which is targeted to premiere by the second quarter of 2018 – is expected to contribute at least RM60m in net profit per annum when fully operational.
Yong Tai CEO Datuk Wira Boo Kuang Loon said on Monday the Encore Melaka theatre will have a significant contribution to the group’s revenue for the financial year ending June 30, 2019 (FYE2019) when the theatre opens its doors in second quarter this year.
The tourism and cultural related property developer had signed agreements with six travel agents which would take up one million tickets per year.
Boo said the off-take agreements for three years showed the travel agents’ commitment and confidence in Encore Melaka.
“The one million tickets represent approximately 70% occupancy of our yearly full capacity, based on 2 shows per day. There is still 30% upside in ticketing sales via online travel agency or our own online ticketing platform,” he added.
The Encore Melaka performance will be held in a 360-degree rotating auditorium with a capacity of 2,000 seats. It is a franchise and the 10th Impression Series and first outside of China.
The auditorium will be within the Impression City in Melaka which has a gross development value of RM7bil. Impression City will be developed in stages on a 138 acre site.
The story of Melaka will be brought to life by 200 local talented performers in colourful period costumes, exuberant stage settings and spectacular lighting and audio effects.
Yong Tai's subsidiary PTS Impression Sdn Bhd (PTSI) had also signed a financing agreement with the Bank of China where the latter will extend RM100mil to part finance the construction of the Encore Melaka theatre. Boo signed on behalf of PTSI while Bank of China was its deputy CEO Datuk Alvin Tay, Deputy CEO.
Yong Tai’s subsidiary YTB Impression Sdn Bhd (YTBI) also signed a heads of agreement with Kirin Financial Group Ltd, a member of Hong Kong-listed Kirin Group Holdings.
The agreement was a strategic collaboration for the proposed investment in Impression City. Kirin Financial Group will be the lead arranger for the investment of not less than RM400mil in development projects within Impression City.
Boo represented YTBI while Kirin Financial Group was represented by its CEO Justin Ng.
As for the ticket sales, PTSI had signed the agreements with Majestic Express Holidays Sdn Bhd; Apple Impression Holiday Sdn Bhd; Levingo Travel Sdn Bhd; Coachliner 707 Travel & Tour Sdn Bhd; WTS Travel & Tours Pte Ltd and Shanghai Ctrip International Travel Service Co. Ltd.
Meanwhile, YTBI also signed an information, communications and technology agreement with Agile Motion Sdn Bhd for the development of high-speed broadband infrastructure for Impression City.
The signing of the agreements were witnessed by Tourism and Culture Minister Datuk Seri Mohamed Nazri Abdul Aziz; Minister in the Prime Minister’s Department Datuk Dr Wee Ka Siong and Yong Tai chairman Datuk Syed Norulzaman Syed Kamarulzaman.
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