YNH Property Bhd plans to launch properties with a gross development value (GDV) of RM5 billion in 2011, including the delayed Menara YNH project in Jalan Sultan
YNH is currently in talks with various parties on a potential joint venture to develop the project.
Menara YNH, with a current estimated GDV of RM2.1 billion, is seen as a major catalyst to YNH’s bottom line growth. The project has been delayed several times since 2006, as deals with two perspective buyers terminated in the past. But market observers said with the property sector heating up again the project may see a chance of revival.
YNH had originally tied up with Singapore property giant CapitaLand Ltd for the project. The two companies signed an MoU in December 2006 to jointly develop Menara YNH on a 60:40 basis. Construction was originally slated to begin in mid-2007 with completion by end-2011. But in June 2007, the MoU was terminated.
Then in January 2008, YNH announced that it would sell half of the Menara YNH project to Kuwait Finance House (KFH) for RM920 million. The sale involved an area of 750,000 sq ft at a price of RM1,230 psf, which at that time set a new record as it was about 10% higher than the record price commanded by the 36-storey Glomac Tower nearby.
KFH was supposed to take up half of the building with the rest to be sold to other buyers. YNH received RM1.84 billion in total proceeds from selling the entire project. But the KFH sale fell through due to the global financial crisis. In December 2009, KFH informed YNH that it would not proceed with the formalisation of the sale and purchase agreement.
Menara YNH, with a current estimated GDV of RM2.1 billion, is seen as a major catalyst to YNH’s bottom line growth. The project has been delayed several times since 2006, as deals with two perspective buyers terminated in the past. But market observers said with the property sector heating up again the project may see a chance of revival.
YNH had originally tied up with Singapore property giant CapitaLand Ltd for the project. The two companies signed an MoU in December 2006 to jointly develop Menara YNH on a 60:40 basis. Construction was originally slated to begin in mid-2007 with completion by end-2011. But in June 2007, the MoU was terminated.
Then in January 2008, YNH announced that it would sell half of the Menara YNH project to Kuwait Finance House (KFH) for RM920 million. The sale involved an area of 750,000 sq ft at a price of RM1,230 psf, which at that time set a new record as it was about 10% higher than the record price commanded by the 36-storey Glomac Tower nearby.
KFH was supposed to take up half of the building with the rest to be sold to other buyers. YNH received RM1.84 billion in total proceeds from selling the entire project. But the KFH sale fell through due to the global financial crisis. In December 2009, KFH informed YNH that it would not proceed with the formalisation of the sale and purchase agreement.
Menara YNH would be now launched in different components — starting with the retail portion, followed by the serviced apartments and offices. YNH is keeping its options open for now on whether it would sell the tower en bloc or on a strata title basis, depending on demand.
YNHP had intended to keep 50% of Menara YNH as an investment property and it would be used as the company’s future corporate headquarters.
Menara YNH forms almost half of YNH’s estimated RM5 billion worth of property launches in 2011. Another of the company’s major launches is the RM1.2 billion “Kiara 163” mixed project, located beside Plaza Mont’Kiara.
Menara YNH forms almost half of YNH’s estimated RM5 billion worth of property launches in 2011. Another of the company’s major launches is the RM1.2 billion “Kiara 163” mixed project, located beside Plaza Mont’Kiara.
In FY10, YNH’s net profit rose 10% to RM56.96 million while revenue was up 2% to RM252.13 million. YNH yesterday reported 1QFY11 net profit of RM15.8 million and revenue of RM55.3 million.
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