YNH Property expects RM305.9 mil net gain from Jalan Sultan Ismail land sale

PETALING JAYA (July 11): YNH Property Bhd (YNHP) has provided additional disclosures on its RM455 million disposal of a freehold commercial development parcel along Jalan Sultan Ismail in Kuala Lumpur, including details on the property’s valuation, audited net book value, estimated gain on disposal and key terms of the redeemable preference shares (RPS) forming part of the consideration.

The disposal, it said in a Bursa Malaysia filing yesterday, involved a freehold commercial development parcel along Jalan Sultan Ismail in Kuala Lumpur, to be transferred by wholly owned subsidiary YNH Land Sdn Bhd to Chin Hin Property (JSI) Sdn Bhd (CHPJSI) for RM455 million, comprising cash, 455,000 RPS and 25,000 ordinary shares in CHPJSI, as previously announced.

Land valued at RM500 million

YNHP said the property’s market value of RM500 million was determined by independent valuer Henry Butcher Malaysia Sdn Bhd as at July 6, 2026, using the income approach by residual method and comparison approach, in accordance with the Securities Commission Malaysia’s Asset Valuation Guidelines and Malaysian Valuation Standards.

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The latest audited net book value of the land was RM77.54 million as at June 30, 2025. Separately, development charges and related costs amounting to RM32.12 million had been incurred and recognised by related companies but had not been billed to YNH Land as at that date.

The company estimates total disposal-related expenses at RM32.33 million, comprising the RM32.12 million in development charges and related costs, and about RM210,000 in professional fees for legal, regulatory, valuation and other incidental costs. These expenses, together with the balance estimated real property gains tax (RPGT) of approximately RM4.73 million, are expected to be funded through internally generated funds or borrowings. YNHP said RM34.48 million of the estimated RPGT is expected to be defrayed from the cash component of the disposal consideration.

Disposal expected to generate RM305.9 mil pro forma gain

YNHP estimated a net pro forma gain on disposal of RM305.93 million after deducting the land’s audited net book value, development charges, estimated professional fees and RPGT from the RM455 million disposal consideration. After taking into account the redemption premium and coupon in arrears on perpetual securities secured on the land, the corresponding increase in retained earnings is about RM284.76 million.

The additional announcement also sets out the key commercial terms of the RPS. The CHPJSI RPS are cumulative, non-convertible and generally non-voting, except in specified circumstances affecting RPS holders’ rights or certain fundamental corporate matters. The terms do not prescribe a fixed preferential dividend rate or payment frequency. Dividends may be declared and paid at rates and on dates determined by CHPJSI’s board, in priority to distributions to other classes of shares.

RPS redeemable at any time

CHPJSI may redeem the RPS at any time, while the RPS holder may require redemption after seven years from the date CHPJSI receives vacant possession of the land or upon certain unremedied breaches under the shareholders’ agreement. If redeemed after the seventh anniversary, the redemption price includes a premium equivalent to 20% per annum on the issue price, accruing from the seventh anniversary until redemption, calculated on a 365-day year and accruing daily as set out in the SPA.

The additional disclosures supplement YNHP’s July 8 announcement on the disposal.

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