Friday, August 17, 2012


After six years of false starts, it is determined to kick start its flagship property development project in the heart of KL early 2013.
It hopes to seal a JV agreement with a partner to help finance the project in the next few months. But even without a partner, the company has resolved to undertake the construction of the rm2.3 billion Menara YNH on its own.
It intends to change the development plan for Menara YNH, a move that will see the inclusion of retail office and serviced apartment components, apart from the food and beverage and hotel components.
YNH has already secured the expertise of a local architect to revise the development plan. Construction is expected to start by early 2013 and be completed within three years.
Upon completion, the group may sell Menara YNH en bloc or keep it for recurring rental income to sustain the company’s earnings.
YNH has two options should it decide to dispose of the building – to sell the tower and land to potential buyers upon completion or to sell the tract and the building plan for Menara YNH via an auction before the project is finalized.
It has a strong balance sheet and dividend distribution policy of at leats 30% of its profits.
Menara YNH is a wild card in YNH’s valuation. Its existing land bank in the Klang Valley , Genting Highlands and Manjung can last the group for another 20 years.
For now a crucial concern is whether potential buyers will be able to secure loans to acquire properties following BNM’s move to implement stricter housing loan requirements.

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