YNH targets RM105m from Hartamas land sale for February sukuk repayment
YNH Property Bhd is working to complete a RM170 million land disposal to Sunway Living Space by January 2027, with net proceeds of about RM105 million earmarked for a RM170 million sukuk redemption due Feb 26, 2027. The developer faces a RM6.8 million shortfall in its sukuk reserve account, which MA
PETALING JAYA (Nov 10): YNH Property Bhd is prioritising a delayed Desa Sri Hartamas land sale expected to release about RM105 million after repayment of a secured loan, alongside project collections, to meet its RM170 million sukuk redemption on Feb 26, 2027.
The developer said it was working with the purchaser and advisers to fulfil the remaining conditions for the proposed RM170 million disposal to Sunway Living Space Sdn Bhd, a wholly-owned subsidiary of Sunway Bhd. About RM65 million would go towards settling the loan secured against the land, leaving approximately RM105 million in net cash proceeds, subject to completion adjustments and related costs.
The funding plan comes as YNH addresses a RM6.8 million shortfall in its designated sukuk reserve account. The account held RM54.4 million as at Oct 27, against the required October balance of RM61.2 million. In a statement, YNH said the shortfall concerned the scheduled accumulation of reserve funds rather than a missed principal repayment, and that it was taking steps to meet the required balance within the contractual remedy period.
MARC Ratings classified the shortfall as a technical default requiring rectification within a 30-day remedy period to avert an event of default. On Nov 6, it downgraded YNH’s RM700 million Islamic Medium-Term Notes Programme to B-IS from BB-IS and placed it on MARCWatch Negative. MARC said the Hartamas disposal was expected to become unconditional by end-November, with completion targeted for January 2027, leaving limited room for further delays before the February sukuk maturity.
The proposed sale involves approximately 5.1 acres of freehold vacant land and dates back to an agreement signed in May 2023. In a Bursa Malaysia filing on Sept 11, YNH said its wholly-owned subsidiary Kar Sin Bhd had signed a sixth supplemental agreement extending the period to fulfil outstanding conditions to Dec 31, 2026. If the conditions remain unmet, Sunway Living Space may exercise its contractual rights, including termination.
YNH managing director Allan Yu Kai Leun said management was focused on converting project sales and asset disposals into cash within the required timelines while maintaining construction progress. “The February 2027 sukuk maturity is a clear priority for management,” he said.
YNH is also pursuing a RM455 million disposal of freehold land along Jalan Sultan Ismail in Kuala Lumpur to Chin Hin Property (JSI) Sdn Bhd. MARC expects that transaction to complete in January 2027, with its approximately RM409.5 million cash component intended to redeem RM350 million in outstanding perpetual securities and settle outstanding coupon obligations. For operating cash inflows, the group said it was relying on construction progress and sales billings at Solasta Dutamas in Kuala Lumpur and township developments in Manjung, Perak.
Separately, YNH said its FY2026 financial statements received an unmodified audit opinion from Morison LC PLT after qualified opinions in the preceding three reporting periods. The group also cited more than 800 acres of undeveloped land as a longer-term development and asset-sale pipeline, while acknowledging that these holdings were not an immediate source of cash.
