KUALA LUMPUR (Jan 29): YNH Property Bhd is planning to sell its Mont Kiara shopping mall, 163 Retail Park, to Sunway Real Estate Investment Trust (Sunway REIT) for RM215 million, cash.
In a bourse filing on Monday, YNH Property said its wholly-owned D’Kiara Place Sdn Bhd has inked a sale and purchase agreement with RHB Trustees Bhd — the trustee of Sunway REIT — for the sale of the seven-storey retail shopping centre.
“The proposed disposal represents an opportunity for the group to unlock the value of monetising its investments in the property,” YNH Property said.
Of the proceeds, RM110.94 million will be used to redeem the property from its chargee, Public Bank Bhd. Another RM74.06 million will be used for the group’s working capital, while RM30 million will go towards the repayment of borrowings.
“The group is expected to record a pro forma net loss of approximately RM12.04 million after accounting for the reversal of deferred tax, which is no longer required as there is no capital gains tax applicable for the disposal of property, from the proposed disposal,” the group said, noting that the property had an audited carrying amount of RM234.69 million as at end-June 2023.
The five-year-old 163 Retail Park has a net lettable space of 255,535 sq ft, with an approximate occupancy rate of 93.99%, according to the group.
The proposed disposal is expected to be completed by the second quarter of 2024 (2Q2024), subject to approval being obtained at the group’s forthcoming extraordinary general meeting.
Last week, after being hit with an unusual market activity (UMA) query from Bursa Malaysia Securities, YNH Property told the bourse regulator that it had received offers for the Mont Kiara shopping mall and would make an announcement once a decision has been made and the terms finalised.
YNH Property — together with Rapid Synergy Bhd and Imaspro Corp Bhd, all three stocks linked to investor Dr Yu Kuan Chon — has come under selling pressure since late December last year and lost over 83% of its value from about RM5, where it had been hovering for almost half a year after hitting a record high of RM5.20 in May.
The stock closed at 84.5 sen on Monday, up 13 sen or 18.18% from last Friday’s close, giving the group a market capitalisation of RM443.9 million.
Units of Sunway REIT closed two sen or 1.29% higher at RM1.57, valuing the REIT at RM5.38 billion.