KUALA LUMPUR: Main Market listed Yong Tai Bhd (YTB) has initiated a joint venture agreement (JVA) between its wholly owned subsidiary YTB Impression Sdn Bhd (YTBI) and Taghill Land Sdn Bhd, a wholly owned subsidiary of Taghill Holdings Bhd to develop two blocks of serviced suites, collectively known as The Dawn @ Impression City Melaka in Malacca.
Under the terms of the JVA, Taghill Land will assume full responsibility for the planning, execution, management, and marketing of The Dawn, comprising 648 units of serviced suites with an estimated GDV of RM183.31 million. In return, Yong Tai immediately unlocks RM28 million, significantly enhancing its cash flow position without incurring further capital risks.
The Dawn @ Impression City Melaka, located within Yong Tai’s premier integrated development in Malacca, has already completed piling and a five-storey car park podium structure, providing Taghill Land with a ready platform to expedite construction. With this partnership, the project is expected to commence in Q3’25 and achieve completion by Q4’27.
Beyond the immediate cash inflow, the JV also presents attractive upside potential for Yong Tai. Should the project’s profit before tax (PBT) exceed RM11 million (after deducting Yong Tai’s entitlement), Yong Tai will further benefit from a 40% share of any additional profits.
YTB CEO and executive director Datuk Wira Boo Kuang Loon said the joint venture with Taghill Land will boost Yong Tai’s finances and lower construction risks. Taghill Land’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.”
Taghill Group, already recognised for its reliable construction and development credentials through previous successful collaborations with Yong Tai – including The Apple and Courtyard by Marriott Melaka hotel – is ideally suited to drive The Dawn project forward, thereby reducing the execution risks for Yong Tai significantly.
