Latest news with #YongTai
The Sun
10 hours ago
- Business
- 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
18 hours ago
- Business
- 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
- Business
- 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.
Focus Malaysia
a day ago
- Business
- Focus Malaysia
Yong Tai acquires Sabah developer for RM15m, targets quick turnaround development projects
MAIN Market-listed tourism-related property developer Yong Tai Bhd has sealed a conditional share sale agreement (SSA) to acquire the entire equity stake in Lahad Datu (Sabah)-based Sumberjaya Builders Sdn Bhd for RM15 mil cash. This strategic acquisition marks Yong Tai's foray into Sabah's property market with a steady growth outlook, thus further diversifying the group's earnings stream and enhancing future profitability. Through this acquisition, Yong Tai will undertake two promising joint-venture (JV) projects already secured by Sumberjaya in Sabah: Lahad Datu project: Spanning 11.97 acres, this project features a mixed development of shop lots, terrace houses and walk-up flats. It carries an estimated gross development value (GDV) of RM70.12 mil and is expected to generate a development profit of RM10.80 mil. Construction is anticipated to commence in 3Q 2025 with completion slated for 3Q 2028. Tawau project: Situated on 15.25 acres, this development which boasts a GDV of RM106.58 mil includes both commercial and residential units. Projected to deliver a development profit of RM29.78 mil, the Tawau project is scheduled to begin in 4Q 2025 with completion targeted by 4Q 2030. 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 entitlement via completed property units which significantly eases immediate cash flow burdens for the group. 'This is in contrast to the substantial upfront investments previously committed to our projects like Encore Melaka and Courtyard by Marriott Melaka,' commented Yong Tai's CEO and executive director Datuk Wira Boo Kuang Loon. '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, hence strengthening our financial position and enhancing returns to our stakeholders.' All-in-all, the Sumberjaya Builders' acquisition complements Yong Tai's on-going development portfolio, including the Impression U-Thant in Kuala Lumpur which is nearing completion in 3Q 2025 and the JV Dawn @ Impression City Melaka which is scheduled for completion by 4Q 2027. 'Our Sabah expansion not only broadens the group's geographic footprint but also ensures a balanced project pipeline for sustainable long-term growth,' envisages Boo. 'The acquisition price of RM15 mil will be settled in three equal tranches that are structured to maintain financial prudence and cash flow efficiency with payments contingent upon satisfactory due diligence and fulfilment of all conditions precedent.' At the close of today's market trading, Yong Tai was down 0.5 sen or 2.94% to 16.5 sen with 549,100 shares traded, thus valuing the company at RM71 mil. – June 26, 2025
The Sun
13-05-2025
- Business
- The Sun
Kerjaya Prospek's RM105.14m claim rejected in adjudication decision
KUALA LUMPUR: Bursa Malaysia's main market-listed Yong Tai Bhd clarified the recent adjudication decision under the Construction Industry Payment & Adjudication Act 2012 (CIPAA Act) regarding disputes between its subsidiary, Apple 99 Development Sdn Bhd, and Kerjaya Prospek (M) Sdn Bhd (KPSB), a wholly-owned subsidiary of Kerjaya Prospek Group Bhd. To recap, on Nov 27, 2024, KPSB initiated adjudication proceedings under the CIPAA Act, claiming RM105.14 million and outstanding interest, to which Apple 99 filed an adjudication response. The adjudication decision delivered on May 9, 2025 denied KPSB's alleged claim of RM105.14 million, instead determined a significantly lower sum of RM75.46 million. The adjudicated sum of RM75.46 million aligns closely with the amount that Apple 99 had already accounted for in its financial statements for the financial year ended June 30, 2024. Yong Tai considers KPSB's alleged claim for RM105.14 million to be without merit, as this amount lacked substantiation and far exceeded the certified contract sum. The group is seeking further legal advice regarding the adjudication decision and will provide updates on material developments as necessary. This decision has no additional material financial impact on Yong Tai's net assets, net assets per share, or gearing, as the adjudicated amount has been fully provided for in the accounts.
