KUALA LUMPUR (June 27): YNH Property Bhd (KL:YNH) said the conditional period of the sale and purchase agreement for it to sell 163 Retail Park to Sunway Real Estate Investment Trust (Sunway REIT) (KL:SUNREIT) has been extended by three months to Sept 26.
The conditional period ended on Thursday (June 26). This is the second extension for the deal.
In filing to Bursa Malaysia, the property developer said both parties have mutually agreed to the extension.
YNH Property in January announced its plan to sell the seven-storey retail shopping centre to Sunway REIT for RM215 million in cash. Sunway REIT emerged as the buyer after the termination of the deal to sell the 163 Retail Park for RM270.5 million to ALX Asset Bhd.
YNH Property intends to allocate RM110.94 million to redeem the property from its charge from Public Bank Bhd. Another RM74.06 million will be used for the group’s working capital, while RM30 million will go towards the repayment of borrowings, according to an earlier bourse filing.
“The group is expected to record a pro forma net loss of approximately RM12.04 million after accounting for the reversal of deferred tax, which is no longer required as there is no capital gains tax applicable for the disposal of property, from the proposed disposal,” the property developer said in the filing, noting that the property had an audited carrying amount of RM234.69 million as at end-June 2023.
The 163 Retail Park has a net lettable space of 255,535 sq ft, with an approximate occupancy rate of 93.99%, according to the group.
YNH Property’s other land sale to Sunway Bhd (KL:SUNWAY) has also faced delays. The deadline for the RM170 million proposed sale of 5.098-acre freehold land in Desa Sri Hartamas has been postponed by a year to May 12, 2025, according to the group’s bourse filing announced last month.
The delay, which was the fifth time for the deal, YNH Property said was due to more conditions are being added to the deal following the discovery of a registered caveat lodged over the property.
The spotlight was again cast on YNH Property on Wednesday as the Securities Commission Malaysia is suing the group’s largest shareholder, Datuk Dr Yu Kuan Chon, for alleged market rigging and manipulation involving shares of Shangri-La Hotels (M) Bhd (KL:SHANG) in 2018.
This exerted selling pressure on YNH Property’s shares. The stock tumbled 11 sen or 18.2% to 49.5 sen, giving it a market capitalisation of RM262 million.
Trading volume swelled to 94.44 million shares, exceeding its 200-day average trading volume of 13.55 million shares — making it the second most active counter on Bursa Malaysia on Thursday.
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