Yong Tai in RM5.6bil GDV projects in Malacca and Kuala Lumpur

Yong Tai's current projects in Malacca include The Apple and Courtyard by Marriott, which is a service apartment and four-star hotel project.

Yong Tai Bhd plans to launch a mixed development project in Malacca with an estimated gross development value (GDV) of RM5.4bil, located next to a piece of seafront land where it will stage a live tourism stage performance for 30 years.

The company has also entered a JV on Monday to develop a luxury service apartment project at Jalan U-Thant, Kuala Lumpur, with a GDV of RM168mil.

Yong Tai, a garment manufacturer which diversified into property development last year, told Bursa Malaysia that the eight-year development project on 100 acres in Kota Laksamana, Malacca, could potentially make a pre-tax return of RM1.6bil.

Yong Tai on Monday signed a conditional joint development agreement with the landowners, Admiral City and its subsidiaries.

Yong Tai also bought on Monday a 17-acre seafront land adjacent to the 100-acre land for RM37.026mil from Admiral City as well as the entire stake in PTS Impression Sdn Bhd, which has a licence from China-based Impression Wonders Art Development Co Ltd to produce and stage the “Impression Melaka” at a theatre to be built on that land, from other vendors for RM3mil.

The total cost to build the theatre and stage the performance is estimated to be about RM256mil over a period of two years. Yong Tai did not give an forecast return for this project.

On the 128-unit luxury apartment block on 1.2 acres in Kuala Lumpur, Yong Tai said the three-year JV project with Fahad Holdings Sdn Bhd may potentially derive a pre-tax return of RM20.5mil, being its 50% profit entitlement.

In a media statement, Yong Tai director Boo Kuang Loon said the acquisitions on Monday would pave the way for the group to tap into the growing property development business segment in Malaysia.

“We deem these acquisitions as strategic investment and expect it to contribute positively to the group’s future earnings in the years to come. Moving forward, we are planning to launch a few projects next year,” he added.

Yong Tai has existing property projects within the heritage city centre of Malacca.

The group is also the project manager behind The Apple and Courtyard by Marriott, a 32-storey service apartment in Malacca and 16-storey four-star hotel, of which the hotel operations will be managed by the well-known Marriott Group.

Yong Tai shares gained half a sen to close at 64 sen on Monday. - By M. HAFIDZ MAHPAR (The Star)