YNH Property seals new deal for Bangsar South development, less than four months after scrapping Chin Hin JV

• Under the deal, YNH is granted the rights by Genland Sdn Bhd (GSB) to develop the project on a 7,235 sq m land in Bangsar South owned by the privately-held property developer.

KUALA LUMPUR (Oct 2): YNH Property Bhd (KL:YNHPROP) said on Thursday that it has entered into a joint venture deal to undertake a mixed high-rise development in Kuala Lumpur.

Under the deal, YNH is granted the rights by Genland Sdn Bhd (GSB) to develop the project on a 7,235 sq m land in Bangsar South owned by the privately-held property developer.

In a filing with Bursa Malaysia, loss-making YNH said it is exploring various funding options for the project, including internally-generated funds and bank borrowings.

GSB will receive a minimum of about RM60 million from YNH, or 18% of the project’s gross development value (GDV), whichever is higher. This implies a GDV of about RM333 million for the project.

As at end-June, YNH reported cash and short-term deposits of RM31.44 million against total borrowings and lease liabilities of RM571.11 million. This left the group with a net debt of RM539.7 million and a net gearing ratio of about 0.83 times.

Thursday’s announcement came just months after YNH scrapped its JV with Chin Hin Group Property Bhd (KL:CHGP) for a large residential project in Kuala Lumpur.

Instead, YNH opted to sell the 6.49-acre Segambut land earmarked for the project to Chin Hin for RM52 million.

YNH has been in the spotlight since October 2023, when its former auditor Baker Tilly raised concerns over RM1.1 billion worth of JVs and turnkey projects carried as inventories on its balance sheet.

A special independent review by UHY Advisory (KL) Sdn Bhd, completed in April this year after several delays, was commissioned to address those issues.

During the review period, YNH also revamped its board in December last year. Datuk Yu Kuan Huat, who owns a 4.48% stake, took over the executive chairman role from his brother Datuk Dr Yu Kuan Chon, the group’s largest shareholder with a 24.41% stake.

Dr Yu now serves as an executive director, together with his son Yu Jian Loong, and Kuan Huat’s son Yu Kai Leun.

Shares of YNH rose one sen or 3.39% to close at 30.5 sen on Thursday, valuing the group at RM158.66 million. The counter has fallen by over 42% year to date.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.