The project is expected to commence in the third quarter of this year and achieve completion by the fourth quarter of 2027.
PETALING JAYA: Property developer Yong Tai Bhd
says it is tying up with Taghill Holdings Bhd in a deal that will grant the latter exclusive rights to develop two blocks of serviced suites in Melaka.
Under the terms of the joint venture agreement, Taghill will assume full responsibility for the planning, execution, management, and marketing of the development, which will be known as The Dawn @ Impression City Melaka.
“The Dawn, comprising 648 units of serviced suites, will have an estimated gross development value of RM183.31mil. In return, Yong Tai immediately unlocks RM28mil, significantly enhancing its cash flow position without incurring further capital risks.
“The Dawn, located within Yong Tai’s premier integrated development in Melaka, has already completed piling and a five-storey car park podium structure, providing Taghill with a ready platform to expedite construction,” Yong Tai said in a statement.
With the partnership, the project is expected to commence in the third quarter of this year and achieve completion by the fourth quarter of 2027.
“Beyond the immediate cash inflow, the joint venture also presents attractive upside potential for Yong Tai.
“Should the project’s pre-tax profit exceed RM11mil after deducting Yong Tai’s entitlement, Yong Tai will further benefit from a 40% share of any additional profits,” the developer said in its statement.
Yong Tai chief executive officer and executive director Datuk Boo Kuang Loon said the venture represents a decisive step in enhancing the group’s financial strength and reducing its exposure to construction risk.
“Taghill’s proven expertise in property construction ensures that The Dawn will be completed swiftly, allowing us to efficiently monetise our previous investments while positioning Yong Tai for sustainable long-term growth.
“Taghill Group, already recognised for its reliable construction and development credentials through previous successful collaborations with Yong Tai, including The Apple service residence and Courtyard by Marriott Melaka hotel, is ideally suited to drive The Dawn project forward, thereby reducing the execution risks for Yong Tai significantly.”
Boo added that the collaboration enables Yong Tai to sharpen its focus and allocate resources towards core projects, including the Impression U-Thant development in Kuala Lumpur and the Encore Melaka theatre, both of which continue to show strong traction post-pandemic.
He said Melaka’s robust tourism recovery, bolstered by enhanced connectivity initiatives such as new Scoot Airline flights and Genting Dream Cruise voyages from Singapore, continues to support strong demand for property and hospitality developments in the region.
“This joint venture strategically positions Yong Tai to benefit directly from the ongoing revitalisation of Malaysia’s tourism sector,” Boo said.
Founded in in 1971, Yong Tai diversified from garment manufacturing into tourism property development.
Today, the developer’s projects include premium condominiums, executive hotels and residences, commercial developments and an theatre for performing arts.
Taghill’s core business is the construction of residential and non-residential buildings.
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