By THE STAR
PETALING JAYA: Ipoh-based YNH Property Bhd is looking at turning its proposed Menara YNH project into a mixed development that would comprise a hotel, offices and retail outlets.
“We’re looking to change the project and are in the process of securing anchor tenants for the mixed development,” said YNH director and head of corporate services Daniel Chan.
“Construction will commence once we’ve confirmed the anchor tenants,” he said.
Chan said the gross development value (GDV) of Menara YNH, which was initially projected at RM2.1bil, has ballooned to over RM3bil, now that it will be a bigger project.
“We’re getting professionals to secure our anchor tenants,” said Chan.
The development of Menara YNH has been delayed several times since 2006, as deals with potential buyers fell through. YNH had originally tied up with Singapore property giant CapitaLand Ltd for the project.
Both parties had signed a memorandum of understanding in December 2006 to jointly develop Menara YNH on a 60:40 basis. The MoU was however terminated in June 2007.
Chan said it would be beneficial to have a mixed development and launch it to several buyers.
“We’re a little bit wary about having a single partner as the risk is higher. By launching it to different buyers, the risk is lessen.”
Separately, Chan said YNH’s next project to be launched would be a mixed development in Seri Kembangan, which has a GDV of RM500mil.
“We intend to launch in two to three months’ time. We also have a residential development in Bangsar South which we’re planning to launch next year.”
He said the Bangsar South development had a GDV of about RM650mil.
Another development we have in the pipeline is our Kiara 163 mixed project, located beside Plaza Mont’Kiara. Construction has begun and it has a GDV of RM1.3bil,” said Chan, adding that YNH also had 38 acres of undeveloped land in Mont’Kiara which the company intends to “develop slowly.”
For its first quarter ended March 31, YNH’s net profit rose to RM11.01mil from RM8.41mil a year earlier, mainly due to stronger profit contribution from Fraser Residence Kuala Lumpur. Fraser Residence Kuala Lumpur has secured sales of about RM338mil.
In its notes to Bursa Malaysia accompanying its first quarter results, YNH said the project was expected to contribute significantly to its profit in the following quarter, in line with the progress of the project construction.
YNH’s revenue for the first quarter increased to RM80.69mil from RM53.04mil a year earlier.
– Malaysia Real Estate News