Yong Tai buys stake in Sumberjaya
PETALING JAYA: Yong Tai Bhd (YTB) has entered into a conditional share sale agreement to acquire the entire equity stake in Sumberjaya Builders Sdn Bhd for RM15mil.
In a statement, the tourism-related property development firm said the strategic acquisition marks the company's entry into Sabah's property market with a steady growth outlook, further diversifying the group's earnings stream and enhancing future profitability.
Through this acquisition, Yong Tai said it will undertake two joint-venture projects already secured by Sumberjaya in Sabah, namely, one in Lahad Datu and the other in Tawau.
Yong Tai said the Lahad Datu project spans 11.97 acres, and features a mixed development of shop lots, terrace houses, and walk-up flats.
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The Sun
14 hours ago
- The Sun
Yong Tai acquires Sabah-based Sumberjaya Builders for RM15m, targets quick turnaround on development projects
KUALA LUMPUR: Bursa Malaysia main market-listed Yong Tai Bhd has entered into a conditional share sale agreement to acquire the entire equity stake in Sabah-based Sumberjaya Builders Sdn Bhd for RM15 million. This strategic acquisition marks Yong Tai's entry into Sabah's property market with a steady growth outlook, further diversifying the group's earnings stream and enhancing future profitability. Through this acquisition, Yong Tai will undertake two promising joint-venture projects that Sumberjaya has already secured in Sabah. The two projects are the Lahad Datu project, spanning approximately 11.97 acres. This project features a mixed development of shop lots, terrace houses, and walk-up flats. The Lahad Datu project is estimated to carry a gross development value (GDV) of RM70.12 million and is expected to generate a development profit of RM10.80 million. Construction is anticipated to commence in Q3 of 2025 and be completed by Q3 of 2028. Secondly, Yong Tai will also undertake the Tawau Project, which is situated on approximately 15.25 acres. This development includes both commercial and residential units, offering an estimated GDV of RM106.58 million and projected to deliver a development profit of RM29.78 million. The Tawau project is scheduled to commence in Q4 2025, with completion targeted for Q4 2030. Yong Tai CEO and executive director Datuk Wira Boo Kuang Loon stated that this acquisition significantly eases the company's cash flow pressure, particularly in comparison to the substantial upfront investments previously committed to projects such as Encore Melaka and Courtyard by Marriott Melaka. 'Unlike high-rise developments that require extensive capital and extended timelines, these new projects in Sabah allow Yong Tai to realise profits swiftly and sustainably, strengthening our financial position and enhancing returns to our stakeholders,' he said in a statement. Yong Tai's strategic acquisition reflects careful consideration of market potential, profitability, and minimal upfront capital requirements. Importantly, the landowners for both projects will receive their entitlements via completed property units, significantly easing the group's immediate cash flow burdens. This acquisition complements Yong Tai's ongoing development portfolio, which includes the Impression U-Thant in Kuala Lumpur, nearing completion in Q3 2025, and The Dawn @ Impression City Melaka, undertaken through a joint venture arrangement and scheduled for completion by Q4 2027. The expansion into Sabah not only broadens the group's geographic footprint but also ensures a balanced project pipeline for sustainable long-term growth. The RM15 million purchase price will be paid in three equal parts, which will help maintain steady finances and support a good cash flow. Payments will only be made after due diligence checks have been completed and all required conditions have been met.
The Star
a day ago
- The Star
Yong Tai buys stake in Sumberjaya
PETALING JAYA: Yong Tai Bhd (YTB) has entered into a conditional share sale agreement to acquire the entire equity stake in Sumberjaya Builders Sdn Bhd for RM15mil. In a statement, the tourism-related property development firm said the strategic acquisition marks the company's entry into Sabah's property market with a steady growth outlook, further diversifying the group's earnings stream and enhancing future profitability. Through this acquisition, Yong Tai said it will undertake two joint-venture projects already secured by Sumberjaya in Sabah, namely, one in Lahad Datu and the other in Tawau. Yong Tai said the Lahad Datu project spans 11.97 acres, and features a mixed development of shop lots, terrace houses, and walk-up flats.
The Star
a day ago
- The Star
Yong Tai acquires stake in Sumberjaya Builders for RM15mil
PETALING JAYA: Yong Tai Bhd (YTB) has entered into a conditional share sale agreement to acquire the entire equity stake in Sumberjaya Builders Sdn Bhd for RM15mil. In a statement, the tourism-related property development firm said the strategic acquisition marks the company's entry into Sabah's property market with a steady growth outlook, further diversifying the group's earnings stream and enhancing future profitability. Through this acquisition, Yong Tai said it will undertake two joint-venture projects already secured by Sumberjaya in Sabah, namely one in Lahad Datu and the other in Tawau. Yong Tai said the Lahad Datu project spans 11.97 acres, and features a mixed development of shop lots, terrace houses, and walk-up flats. With an estimated gross development value (GDV) of RM70.12mil, the project is expected to generate a development profit of RM10.80mil. The Tawau project meanwhile is situated on approximately 15.25 acres, and includes both commercial and residential units, offering an estimated GDV of RM106.58mil and projected to deliver a development profit of RM29.78mil.
