KUALA LUMPUR, 22 March: Tourism and cultural property developer Yong Tai Bhd is embarking on two property projects with a total gross development value (GDV) of RM2.3 billion.
In a filing with the stock exchange, it said it will undertake a mixed project with a gross development value of RM1.1 billion through the acquisition of two pieces of land measuring six acres for RM35 million within the Impression City project in Malacca.
Yong Tai has entered into an agreement with Mustazah Osman and Laila Endut of Laila Development Sdn Bhd for the land acquisition. Yong Tai will raise the RM35.0 million via a mix of internally generated funds and/or bank borrowings.
The mixed project will comprise a hotel, serviced apartments and retail units and is expected to take five years to complete.
With an estimated gross development cost (GDC) of about RM800 million, Yong Tai said, the project will give rise to a potential gross development profit of RM300 million.
In addition, Yong Tai’s wholly-owned subsidiary YTB Impression Sdn Bhd entered into an agreement with JM Bestari Land Sdn Bhd for the joint development of a piece of land in Melaka Tengah.
The GDV and the GDC of this project are estimated at RM1.2 billion and RM800 million, giving rise to a potential gross development profit of RM400 million.
The project, which may include office, commercial and retail units, is to be completed in about five years.
— THE SUN