Yong Tai's unit to acquire land in Melaka worth RM41.69m

• YTB said it would be able to utilise the savings from the cash commitment to fund the group’s ongoing development projects and for future business expansion purposes.

KUALA LUMPUR (Jan 9): Yong Tai Bhd’s (YTB) newly incorporated and wholly-owned subsidiary, YTB Lifestyle Mall Sdn Bhd (YTBLM), has entered into a sale and purchase agreement (SPA) with Admiral City Sdn Bhd to acquire a piece of leasehold land in Melaka for RM41.69 million.

Admiral City is the registered proprietor of the leasehold land, known as Plot 1A, measuring approximately 57,171 sq m in Melaka Tengah, with leasehold tenure expiring on June 12, 2116.

In a filing with Bursa Malaysia on Friday, the tourism-related property development company also announced that its wholly-owned subsidiary, YTB Impression Sdn Bhd (YTBI), has entered into a supplemental agreement with Admiral City and its subsidiaries (landowners) to amend the terms and conditions of a joint development agreement (JDA).

“By entering into the supplemental agreement, it will discharge YTBI’s obligation to pay the monthly instalments to the chargee bank on behalf of the landowners pursuant to the JDA,” YTB said.

It said it would be able to utilise the savings from the cash commitment to fund the group’s ongoing development projects and for future business expansion purposes.

YTB added that a supplemental agreement continues to allow the group to discuss and negotiate with landowners for future joint development on the undeveloped land as and when the property market recovers and potential investors can be secured.

“As at the date of the supplemental agreement, YTBI has paid a total of RM35.19 million, comprising the advance payment of RM3 million paid to landowners and the instalments amounting to RM32.19 million paid to the chargee banks for the benefit of the landowners pursuant to YTBI’s obligations under the JDA.

“The total sum shall be treated as part payment to the purchase price of Plot 1A SPA,” it said.

In a separate filing, YTB announced it has mutually agreed to terminate the collaboration agreement with Opustique Infinity Ltd, Cheng Ho International Trade Centre, Culture City Centre Sdn Bhd and Oriental Impression City Development Sdn Bhd with immediate effect, due to the parties being unable to complete the terms of the proposed collaboration.

Upon the termination, YTB said the collaboration agreement shall have no further force or effect and neither party shall have any claims whatsoever against the other in respect of the agreement.

“The termination will not have any material financial impact on YTB and its subsidiaries,” it said.