KUALA LUMPUR, Aug 1 – Yong Tai Bhd will sell its five-star Courtyard by Marriott Melaka hotel to Southern Envoy Sdn Bhd for RM160 million.
In a Bursa Malaysia filing on Wednesday, Yong Tai said its wholly-owned subsidiary, Apple 99 Development Sdn Bhd has entered into a conditional sale and purchase agreement with Southern Envoy.
It said the proposed sale of the hotel represents an opportunity for Yong Tai to immediately unlock the hotel’s value, and it is expected to provide an estimated net pro forma gain on disposal of approximately RM45.86 million.
“The proposed disposal will give rise to RM160 million in proceeds to be utilised by the group to, among others, repay the Apple 99’s existing bank borrowings and payment of outstanding progress claims to the main contractor, hence improving Yong Tai’s gearing level.
“Upon completion of the proposed disposal, Yong Tai is able to improve its financial performance and realise a gain, thereby strengthening its cash flow and net assets position,” it said.
Yong Tai said the hotel’s market value, as appraised by Nawawi Tie Leung Property Consultants Sdn Bhd, using the comparison approach and supplemented by the income approach, based on its valuation report dated June 1, 2024, of RM170.00 million.
