PETALING JAYA (March 21): Tourism and cultural property developer Yong Tai Bhd has acquired two pieces of prime lands adjacent to the Impression Melaka theatre for a proposed mixed development.
In a press statement today, Yong Tai announced that it has entered into a Conditional Sales and Purchase Agreement (SPA) with Mustazah Osman and Laila Endut (the vendors) of Laila Development Sdn Bhd for the acquisition of their entire block of issued shares in Laila Development for RM35 million cash.
Laila Development is the registered and beneficial owner of the two vacant leasehold plots of six acres each.
According to Yong Tai, the parcels of land are intended for a mixed development project which will comprise a hotel, serviced apartments and retail units.
The developer will be submitting a detailed development plan to the relevant authorities for approval, once the plan is firmed up.
The proposed development will have an estimated gross development value and gross development cost of about RM1.1 billion and RM0.8 billion respectively.
Yong Tai group CEO Datuk Wira Boo Kuang Loon is optimistic that the acquisitions will further drive the company’s growth and expansion in the near future.
“The lands are just next to the Impression Melaka theatre. We deem these acquisitions as strategic investments and expect them to contribute positively to the group’s future earnings in the years to come,” he said, adding that the corporate exercise is set to be completed by 3Q2017.
The theatre is part of the group’s Impression City, a RM5.4 billion gross development value cultural tourism development in Melaka which also features hotels, a mall, residential units and commercial lots. The landmark project will be developed in stages on a 100-acre parcel of land.
Meanwhile, Yong Tai’s wholly-owned subsidiary YTB Impression Sdn Bhd has entered into a conditional joint development agreement (JDA) with JM Bestari Land Sdn Bhd for the development of all land under PT 2326, Kawasan Bandar VI, District of Melaka Tengah.
JM Bestari Land entered into the SPA with the Chief Minister of Malacca (Incorporation) to purchase the JV Land but the process has yet to be completed.
Pursuant to the JDA, JM Bestari Land, which will be the landowner of the JV Land, has agreed to grant YTB Impression the sole and exclusive rights and entitlement to develop the JV Land, subject to the terms and conditions of the JDA.