Artist impression of the Impression Melaka
KUALA LUMPUR: Yong Tai Bhd
(YTB), through a newly-acquired subsidiary, will be developing a mixed development project with a gross development value of RM1bil in the Bukit Bintang vicinity of Kuala Lumpur.
This is one of several announcements made by YTB to Bursa Malaysia on Friday, the others being that it has inked a definitive agreement to undertake a RM180mil joint-venture (JV) property project at Jalan U-Thant, Kuala Lumpur, and has scrapped the plan for a RM363mil mixed development in Johor Baru.
YTB said it had signed a conditional agreement to subscribe to new shares in Iconic Paragon Sdn Bhd (IPSB) resulting in it holding not less than 70% equity interest.
IPSB had earlier entered into an agreement with Datuk Bandar Kuala Lumpur to acquire two pieces of land totalling 1.08 acres in the Golden Triangle of Kuala Lumpur (Jalan Padang/Jalan Padang Walter Grenier), but the purchases have not been completed.
YTB has agreed to provide funding of up to RM130mil to IPSB to buy the land and pay related costs, along with a contribution of RM485,715 to improved service fund for road and drainage.
“The board is of the view that the vicinity surrounding the Bukit Bintang area in the Kuala Lumpur city centre lacks affordable and quality 4-star hotel and as such, given its strategic location within the aforementioned vicinity, the lands are suitable for a mixed development comprising a 4-star hotel, service apartments and office block and is expected to have an estimated GDV of RM1bil over an estimated development period of five years,” it said.
YTB, which is developing the Impressions City project in Malacca, said it had also inked a JV agreement with KOF Holdings Sdn Bhd (formerly Fahad Holdings Sdn Bhd) to jointly develop two adjoining lands at Jalan U-Thant.
The proposed JV development will take three years to complete and may include, but is not limited to, residential units.
YTB will pay KOF half of the after-tax profit from the project.
In a separate announcement, YTB said it had also entered into a memorandum of understanding (MoU) to mutually and amicably terminate an MoU to buy the Johor Baru land that was signed in August 2015 (i.e. the same time that the MoU for the Jalan U-Thant project was inked).
The MoU was for acquiring Land & Build Sdn Bhd (L&B), which holds the development rights to develop two parcels of freehold land totalling 1.77 acres in Johor Baru, from two individuals.
The land had been intended for a mixed development comprising retail and Small Office Versatile Office (SOVO) units, hotel and office suites.
“The parties are unable to agree and to finalise the terms of the proposed acquisition of L&B,” YTB explained.
YTB also announced the acquisition of the entire issued shares of Apple 99 Development Sdn Bhd for RM15mil in cash.
YTB, through unit YTB Apple Sdn Bhd, currently has a joint operation agreement with Apple 99 to jointly operate and manage the development of a piece of freehold land in Malacca into a 32-storey block of service suite apartment, and a 16-storey four-star hotel (Courtyard at Marriott) and a podium.
It is assumed that the development will be completed within two years.
The service apartment block, expected to be completed by end-2018, will have an estimated GDV of RM245mil and a potential gross development profit of RM77mil.
The Courtyard by Marriot hotel has an estimated gross development cost of RM161mil and is intended to be retained by the YTB group as its investment property.
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