Yong Tai signs 5 MoUs involving 5 property projects with GDV of RM7bil

Garment-maker-turned-property developer Yong Tai Bhd has entered into five separate memorandums of understanding (MoUs) to acquire land and businesses that can provide the company with five potential property development projects in the Klang Valley, Malacca and Johor.

Yong Tai told Bursa the five projects were expected to carry a combined gross development value (GDV) of RM7bil over the next eight years.

Executive director Ng Jet Heong said the move was in line with Yong Tai Group’s expansion and that it would “continuously seek” to acquire more land.

He said the MoUs will enable them to come to more definitive agreements for the proposed acquisitions and proposed JVs.

Trading in the shares of Yong Tai, which was suspended on Monday pending the above announcement, would resume today.

The counter was last traded at 78 sen prior to the suspension yesterday, when Yong Tai signed MoUs with PTS Impression Sdn Bhd, Yuten Development Sdn Bhd, Terrawest Resources Sdn Bhd, Land & Build Sdn Bhd and Admiral City Sdn Bhd.

The deal with PTS Impression and its vendors involves Yong Tai acquiring its entire equity stake. PTS Impression holds the rights to produce and stage a tourism performance known as “Impression Melaka”.

The deal with Yuten and vendors involve Yong Tai acquiring 100% of Yuten which has a joint venture arrangement with Fahad Holdings Sdn Bhd to jointly develop two adjoining parcels along Jalan U-Thant, Kuala Lumpur.

The MoU with Terrawest and vendors will see Yong Tai acquiring the company for its two parcels of freehold and contiguous land in Puchong, Selangor.

As for its MOU with Land & Build, Yong Tai is eyeing its development rights to develop two freehold parcels in Johor Baru.

Meanwhile, Yong Tai’s deal with Admiral City involves the proposed acquisition of 17 acres of seafront land in Kawasan Bandar VI in Malacca and to jointly develop 100 acres of leasehold land adjacent to the Impression land in Malacca.

Yong Tai said the MoUs would remain in force for three months, while the Admiral City agreement expires in two months.

Of the five potential projects, the company said Malacca development projects could potentially contribute GDV worth RM6.3bil, while those in the Klang Valley and Johor Baru may contribute RM341mil and RM363mil, respectively.

These potential projects would include the tourism and mixed developments at Kota Laksamana, Malacca, 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 tower block of small-office-versatile-office units and one hotel tower in Puchong, Selangor, and a mixed development project comprising retail and SoVo units, hotel and office suites in Johor Baru. - By The Star