KUALA LUMPUR (July 8): YNH Property Bhd (KL:YNHPROP) is selling a prime freehold land parcel along Jalan Sultan Ismail in the city centre here to Chin Hin Group Property Bhd’s (KL:CHGP) 70%-owned unit — Chin Hin Property (JSI) Sdn Bhd (CHPJSI) — for RM455 million in a cash-and-share deal.

Under the deal, YNH Property’s wholly-owned unit YNH Land Sdn Bhd will receive RM409.48 million in cash and RM45.5 million worth of redeemable preference shares at an issue price of RM100 apiece in CHPJSI from the land sale, according to YNH Property’s bourse filing on Wednesday.

Post-acquisition, YNH Land will also receive a 10% equity stake in CHPJSI through the issuance of 25,000 ordinary shares. This would enable YNH Land to retain an economic participation in CHPJSI and provide potential future upside from the development of the land without having to undertake the direct funding, execution and development risks of the project.

EC Properties (M) Sdn Bhd, another shareholder of CHPJSI, will grant a RM91 million interest-free shareholder’s loan to settle part of the purchase consideration. The balance of RM318.5 million will be funded through term loan raised by CHPJSI.

At Chin Hin Group Property, the land purchase will lift its gearing ratio to 1.25 times from 0.66 times.

As at March 31, 2026, Chin Hin Group Property had cash and bank balances of RM89.7 million and total borrowings of RM384.4 million.

YNH Property acquired the 2.61-acre land, located opposite the Concorde Hotel, in July 2004 for RM109.87 million. The vacant site, which had an audited carrying value of RM77.54 million as at June 30, 2025, already has an approved development order valid until June 2027 for a mixed commercial development with a plot ratio of about 15.99.

The group previously planned to develop Menara YNH on the site. The mixed commercial project had an internal targeted gross development value (GDV) of RM4 billion and would comprise a hotel, serviced apartments and a retail mall, according to YNH Property’s latest annual report.

In its filing, YNH Property said the disposal of the land to Chin Hin Group Property is aimed at unlocking the value of the asset and strengthening the group’s financial position. The cash proceeds will be used primarily to redeem perpetual securities secured against the land, reducing the group’s exposure to stepped-up coupon obligations while supporting its liquidity and capital management.

Of the RM409.48 million cash component, RM375 million will be used to redeem perpetual securities secured against the land while RM34.48 million will be used to partially settle the real property gains tax arising from the disposal.

As at March 31, 2026, debt-laden YNH Property had borrowings of RM405.97 million, comprising RM320.93 million in secured term loans and medium-term notes and RM85.05 million in secured bank overdraft and revolving credit.

On the other hand, YNH Property’s cash and short-term deposits stood at RM22.4 million.

Chin Hin Group Property, in a separate filing, said the group intends to develop the land into a mixed-use development with an estimated GDV of RM3.6 billion.

The development is expected to comprise serviced apartments, hotel and retail space. It is targeted for launch in the second quarter of 2027 and completed by the second quarter of 2034.

Chin Hin Group Property said the acquisition is in line with its strategy to expand its landbank located within the KLCC area.

“Opportunities to acquire a freehold development site of this scale and location in the city’s Golden Triangle are exceptionally rare. This proposed acquisition strengthens our landbank in high-demand urban corridors, directly aligning with our growth strategy and our commitment to high-quality development opportunities,” said Chin Hin Group Property executive chairman Datuk Wira Chiau Haw Choon in a statement.

YNH Property group managing director Yu Kai Leun said this proposed transaction forms a core component of its ongoing capital recycling strategy, enabling the group to realise value from a strategic asset while strengthening its overall financial flexibility and balance sheet discipline.

M&A Securities Sdn Bhd has been appointed as adviser for the proposed acquisition.

Chin Hin Group Property’s share price closed down one sen or 0.93% at RM1.06, giving the company a market capitalisation of RM1.47 billion.

YNH Property settled 2.5 sen or 8.2% higher at 33 sen, valuing the group at RM175 million.

Sourced: The Edge (10 July 2026)