By THE STAR
KUALA LUMPUR: Mycom Bhd, the flagship of Datuk Yap Yong Seong, popularly known as Duta Yap, has struck a joint venture with Westcity plc to develop 10 acres in Mont Kiara valued at RM300mil.
This follows a letter of intent signed between Mycom wholly-owned unit KH Land Sdn Bhd and Westcity for the RM1.8bil mixed development project on a 60:40 basis.
This represents part of the total 88 acres in Mont Kiara that were injected into Mycom and Olympia Industries Bhd under their restructuring schemes. The land belonged to Kenny Heights Development Sdn Bhd, in which Mycom holds 58% stake and Olympia the balance 42%.
The proposed township for the 88 acres has been approved for a gross floor area (GFA) of about 23 million sq feet with 70% in commercial properties.
Westcity is a property and property-related investment, development and management company quoted on the Alternative Investment Market of the London Stock Exchange. It has set up a property fund with the Stonehenge group, an international wealth management and fiduciary services business founded in 1976.
Based on this joint venture of RM300mil, analysts estimated the GFA should fetch a market value of RM2.5bil.
If the joint venture goes through, it could add a substantial amount per share to Mycom’s existing net tangible asset (NTA) of RM1.30, and this excludes other assets such as Mycom’s oil palm estates in Sabah and valuable assets in Jalan Ampang, Kuala Lumpur.
Oympia, through its equity in the total land area, is also likely to receive a boost in NTA.
“I really hope investors in property-related firms realise the quality of Mycom’s assets because in property development, it is all about location, location and location,” Yap told StarBiz.
“I expect they will also re-rate Mycom as a property company because it will own a township in Mont Kiara. The proposed joint venture represents a major milestone to Mycom and throws up a new realisation of values in one of the last pieces of prime property in the Federal Territory.”
The keen interest shown by Westcity indicates that the Government has taken the right step to attract foreign investments in Malaysian properties, which is currently trading at one to four times compared with Singapore.
After many years, Mycom and Olympia Industries finally completed their respective restructuring schemes and were requoted with new businesses in April.