KUALA LUMPUR, YNH Property Bhd has signed a joint venture agreement to develop a mixed high-rise project in Bangsar South, less than four months after scrapping a partnership with Chin Hin Group Property Bhd.
According to its Bursa Malaysia filing, YNH will develop the project on a 7,235 sq m parcel owned by Genland Sdn Bhd (GSB), a privately held developer. Under the deal, GSB is entitled to a minimum of RM60 million or 18% of the project’s gross development value (GDV) — whichever is higher. This translates to a GDV of about RM333 million.
The loss-making developer said it is evaluating several financing options, including internal funds and bank borrowings. As of end-June, YNH held RM31.44 million in cash and short-term deposits against RM571.11 million in borrowings and lease liabilities, leaving it with net debt of RM539.7 million and a gearing ratio of 0.83 times.
The move comes shortly after YNH called off a JV with Chin Hin for a large residential development on a 6.49-acre Segambut land, which was subsequently sold to Chin Hin for RM52 million.
YNH has faced investor scrutiny since October 2023, when its former auditor Baker Tilly raised concerns over RM1.1 billion worth of joint ventures and turnkey projects recorded as inventories. A special independent review by UHY Advisory (KL) Sdn Bhd, completed in April this year, was commissioned to address the matter.
The company also underwent a board restructuring in December 2023. Datuk Yu Kuan Huat, who owns 4.48% of YNH, assumed the executive chairman post from his brother Datuk Dr Yu Kuan Chon, the largest shareholder with a 24.41% stake. Dr Yu now serves as an executive director alongside his son Yu Jian Loong, while Kuan Huat’s son Yu Kai Leun also joined the board.
On Thursday, YNH shares rose one sen or 3.39% to close at 30.5 sen, giving the group a market value of RM158.66 million. Despite the slight rebound, the counter has fallen more than 42% year-to-date.
