KUALA LUMPUR: YNH Property Bhd’s shareholders have approved the disposal of Kiara 163 Retail Park and AEON Seri Manjung for a total of RM422.5mil cash to ALX Asset Bhd at an extraordinary general meeting (EGM) held today.
“The disposal will generate an infusion of RM422.5mil into the YNH group and this will strengthen our balance sheet while allowing our group to gain more headroom to secure future funding required to finance other exciting projects within our landbank as well as kick-starting our flagship project, Menara YNH,” independent non-executive director Ching Nye Mi said in a statement.
Ching said YNH remains optimistic on the outlook of the property sector in Malaysia and expects to continue to receive rental income of approximately RM6.4mil per annum from its current properties located in Perak.
“Our on-going property development projects including Solasta Dutamas and future property development project located in Genting Highlands, are also expected to contribute positively to our group’s financial performance in the foreseeable future,” he added.
YNH is expected to record a pro forma net gain of approximately RM61mil from the proposed disposal exercise, which is expected to improve its net assets and earnings.
Proceeds of the disposal will be utilised for repayment of bank borrowings and working capital requirements of the group as well as to pay for the said proposed disposal exercise.
YNH had earlier disclosed that the total cash consideration of RM422.5mil consists of the disposal of Kiara 163 Retail Park for RM270.50mil and AEON Seri Manjung for RM152mil.
The two assets will be satisfied by ALX entirely in cash, through the issuance of medium-term notes under a proposed asset-backed medium-term-notes programme of up to RM500mil in nominal value.