KUALA LUMPUR (Sept 22): YNH Property Bhd proposes an asset-backed securitisation exercise to raise up to RM500 million fresh capital, seven months after it issued Islamic sukuk to raise RM323 million.

The company intends to securitise its two retail malls, namely 163 Retail Park at Mont Kiara, Kuala Lumpur, and AEON Seri Manjung in Perak.

The real estate developer said in its filing with the stock exchange that the debt financing exercise, which requires shareholders’ approval, will enable it to realise immediate net cash proceeds.

YNH said the disposal consideration remains subject to change and is dependent on the valuation of the properties. However, it did not reveal the utilisation of the proceeds.

The group’s gearing ratio was at 96% as on June 30, with total borrowings of RM942.89 million plus trade and payables of RM255.44 million. Its cash and bank balances were at RM51.07 million.

For the six-month period ended June 30, it posted a net profit of RM4.27 million on revenue of RM106.3 million. However, it posted losses attributable to shareholders of RM7.51 million, or 1.42 sen per share, after payment of RM11.79 million to perpetual securities holders during the period.    

YNH has been loss making in the past two years.

YNH’s executive chairman Datuk Dr Yu Kuan Chon is the single largest shareholder in the group, holding a 24.4% direct interest, followed by his brother Datuk Yu Kuan Huat who has 4.5% direct shareholdings.

Shares of YNH, which has risen 50% year to date, closed unchanged at RM3.98, giving it a market capitalisation of RM2.11 billion.