Yong Tai aborts plans for RM168m condo project

KUALA LUMPUR (Jan 20): Yong Tai Bhd has aborted plans to develop a luxury serviced apartment project in Jalan U-Thant here, which carries a gross development value of RM168 million, via a joint venture (JV).

This follows its decision not to proceed with the proposed acquisition of Yuten Development Sdn Bhd, which holds a JV arrangement to develop 1.2 acres (0.49ha) of land in Jalan U-Thant into high-end residences.

In a filing with Bursa Malaysia yesterday, the garment maker turned property developer said it and Yuten vendors (Sia Chien Vui, Datuk Seri Lee Ee Hoe and PTS Properties Sdn Bhd) yesterday agreed to mutually terminate the Yuten share sale agreement (SSA).

“After careful consideration, the board has decided not to proceed with the proposed acquisition of Yuten and consequently on Jan 19, Yong Tai and the Yuten vendors agreed to mutually terminate the Yuten SSA with immediate effect via a mutual termination letter,” it added.

Yong Tai on Nov 2, 2015 was notified of the conditional approval letter from the Kuala Lumpur City Council received by Yuten in relation to the application for the development order for the U-Thant project, whereby one of the conditions imposed was that the density of the U-Thant project was lower than the density stipulated in the condition precedent to the Yuten SSA. The U-Thant project had originally comprised 128 condominium units.

Yong Tai on Oct 26, 2015, entered into a conditional SSA with the Yuten vendors for the proposed acquisition of Yuten for RM3 million cash.

Yong Tai shares closed 2.5 sen or 3.36% higher at 77 sen yesterday, with a market capitalisation of RM123.47 million.

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This article first appeared in The Edge Financial Daily, on Jan 20, 2016. Subscribe to The Edge Financial Daily here.