KUALA LUMPUR: Main market-listed Yong Tai Bhd (YTB), via its wholly-owned subsidiary, YTB Impression Sdn Bhd (YTBI), formed a strategic joint venture agreement with Taghill Land Sdn Bhd (TLSB), a wholly-owned subsidiary of Taghill Holdings Bhd.
This collaboration grants TLSB exclusive rights to develop two blocks of serviced suites, collectively known as The Dawn @ Impression City Melaka, strategically in the heart of Melaka.
Under the terms of the joint venture agreement, TLSB will assume full responsibility for the planning, execution, management, and marketing of The Dawn, comprising 648 units of serviced suites with an estimated gross development value (GDV) of RM183.31 million.
In return, YTB immediately unlocks RM28 million, significantly enhancing its cash flow position without incurring further capital risks.
The Dawn @ Impression City Melaka, located within YTB’s premier integrated development in Melaka, has already completed piling and a five-storey car park podium structure, providing TLSB with a ready platform to expedite construction.
With this partnership, the project is expected to commence in Q3 2025 and achieve completion by Q4 2027.
Beyond the immediate cash inflow, the joint venture also presents attractive upside potential for YTB.
Should the project’s profit before tax (PBT) exceed RM11 million (after deducting YTB’s entitlement), the company will further benefit from a 40% share of any additional profits.
Commenting on the strategic nature of this collaboration, YTB CEO and executive director Datuk Wira Boo Kuang Loon said this joint venture with TLSB represents a decisive step in enhancing YTB’s financial strength and reducing its construction risk exposure.
“TLSB’s proven expertise in property construction ensures that The Dawn will be completed swiftly, allowing us to efficiently monetise our previous investments while positioning Yong Tai for sustainable long-term growth,“ he said.
Taghill Group, already recognised for its reliable construction and development credentials through previous successful collaborations with YTB—including The Apple and Courtyard by Marriott Melaka hotel—is ideally suited to drive The Dawn project forward, thereby reducing the execution risks for YTB significantly.
This strategic move enables YTB to sharpen its focus and allocate resources towards core flagship projects, including the Impression U-Thant development in Kuala Lumpur and the Encore Melaka theatre, both of which continue to show strong traction post-pandemic.
Melaka’s robust tourism recovery, bolstered by enhanced connectivity initiatives such as new Scoot Airline flights and Genting Dream Cruise voyages from Singapore, continues to support strong demand for property and hospitality developments in the region.
This joint venture strategically positions YTB to benefit directly from the ongoing revitalisation of Malaysia’s tourism sector.
