PETALING JAYA: YNH Property Bhd
will be disposing of certain lands and properties belonging to wholly-owned and indirect subsidiaries of the company for RM63.5mil, to repay outstanding loans.
In a filing with Bursa Malaysia yesterday, the property developer said it had entered into five sale and purchase agreements between June 27, and Dec 27, to dispose of lands and properties owned by Hotel Sfera Sdn Bhd, Kar Sin Bhd and Mesra Unggul Sdn Bhd, to Kmart Sdn Bhd, Provigo Sdn Bhd and Invesco Asset Sdn Bhd.
“The disposal represents an opportunity for the group to unlock the value of and monetise its investments in property and land. The group is expected to record a pro forma net gain of approximately RM23.96mil.
“The disposal will also enable the group to raise proceeds of RM63.5mil to be utilised for repayment of outstanding loans and working capital.
“The utilisation of the proceeds is expected to contribute positively to the future cash flow of the group when it materialises.” Following the disposal of the companies, YNH said its gearing would be reduced to 0.68 times from 0.71 times.
Hotel Sfera, an indirect wholly owned subsidiary of YNH, operates and manages the Hotel Sfera in Seri Manjung, Perak.
Kar Sin, which is also a wholly owned subsidiary of the company, is involved in property development and cultivation and sale of oil palm.
Mesra Unggul, an indirect wholly owned subsidiary of the company, is involved in property investment and development.
