Wednesday 21 Feb 2024
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GEORGE TOWN (Aug 3): Yong Tai Bhd has entered into five separate memorandums of understanding (MoUs) today for a host of proposed business and land acquisitions that can provide it five potential property development projects in Melaka, Klang Valley and Johor, with a combined gross development value (GDV) of about RM7 billion, spread over the next eight years.

In a filing with Bursa Malaysia, the garment maker turned property developer’s executive director Ng Jet Heong said the MoUs and the proposals contemplated are in line with Yong Tai Group’s expansion plans to grow its property development business segment by acquiring more lands with good prospects for future property development activities.

“The MoUs entered with the respective parties will allow us to negotiate with the parties involved and work together in executing definitive agreements for the proposed acquisitions and proposed joint venture,” he added.

It inked the MoUs with: PTS Impression Sdn Bhd (PTS Impression), Yuten Development Sdn Bhd (Yuten), Terrawest Resources Sdn Bhd (Terrawest), Land & Build Sdn Bhd (Land & Build) and Admiral City Sdn Bhd.

Under its MoU with PTS Impression and its vendors, Yong Tai wants to acquire the entire equity of PTS Impression, whic holds the license to produce and stage a tourism stage performance known as ‘Impression Melaka’

Under its MoU with Yuten, Yong Tai wants to buy the entire equity of Yuten, which holds a joint venture arrangement to develop 1.2 acres of land in Jalan U-Thant, Kuala Lumpur, into high-end residences.

As for its MoU with Terrawest, Yong Tai wants to acquire the former as it owns 1.5 acres of land in Puchong for a potential mixed development.

It also wants to acquire Land & Build as the latter holds the development rights for a mixed development on 1.77 acres of land in Johor Bahru, Johor.

Meanwhile, its MoU with Admiral City is to enable Yong Tai to take over the latter’s 17 acres of seafront land in Melaka Tengah (Impression Land) for a potential development into a theatre, mainly for the production of ‘Impression Melaka’.

Also under its MoU with Admiral City, it is proposing the establishment of a joint development arrangement to jointly develop approximately 100 acres of leasehold land that is adjacent to the Impression Land, which it refers to as the ‘Melaka JV Land’.

“Subject to the approval of relevant authorities, the Melaka JV Land, together with the Impression Land, are intended for a proposed master development over a span of eight years, which may include residential, retail, hotels, serviced apartments, office towers, commercial shops and offices.

Of the five potential projects, development projects in Melaka may potentially contribute
RM6.3 billion worth of GDV, while Klang Valley and Johor Bahru may potentially contribute
RM341 million and RM363 million, respectively, said Yong Tai.

These potential projects include the tourism and mixed developments at Kota Laksamana, Melaka, comprising the ‘Impression Melaka’ and ‘Impression City’ projects, upmarket and luxury service apartments project at Jalan U-Thant, Kuala Lumpur, a mixed development project comprising one (1) tower block of Small Office Versatile Office (SOVO) units and one hotel tower in Puchong, Selangor, as well as a mixed development project comprising retail and SOVO units, hotel and office suites in Johor Bahru, Johor, it said.

In a separate filing, Yong Tai said the MoUs will remain in force for three months except for the one with Admiral City, which will expire in two months. Yong Tai added that the MOUs would be terminated upon execution of the definitive agreements for the proposals.

Its shares was untraded today. It last closed at 78 sen for a market capitalisation of RM93.87 million.

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