Yong Tai's unit funds RM41.69 million on Melaka land

Key takeaway: The financial commitment savings, according to YTB, would be utilized to fund for the group's ongoing development programmes as well as potential future company expansion.

YTB Lifestyle Mall Sdn Bhd (YTBLM), a newly created wholly-owned subsidiary of Yong Tai Bhd (YTB), has signed a sale and purchase agreement (SPA) with Admiral City Sdn Bhd to acquire RM41.69 million for a leasehold land parcel in Melaka.

The leased land, known as Plot 1A, is located in Melaka Tengah and is owned by Admiral City according to the records. The leasehold term expires on June 12, 2116.

The tourism-related property development company also disclosed that its wholly-owned subsidiary, YTB Impression Sdn Bhd (YTBI), has entered into a supplemental agreement with Admiral City and its subsidiaries (landowners) to modify the terms and conditions of a joint development agreement, in a filing with Bursa Malaysia on Friday (JDA).

It said that it will be able to use the financial commitment's savings to fund for current group growth programmes as well as potential future business expansion.

YTB continued by saying that a supplemental agreement keeps the group free to speak with and bargain with landowners about prospective joint development on the vacant land if and when the real estate market strengthens and potential investors may be found.

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