YNH Property Bhd is selling the 163 Retail Park and AEON Seri Manjung shopping centres to ALX Asset Bhd for RM422.5 million in cash.
It informed the stock exchange today that it is selling AEON Seri Manjung with land for RM152 million and 163 Retail Park for RM270.50 million (Nov 17).
According to YNH, its fully-owned companies D'Kiara Place Sdn Bhd and YNH Hospitality, respectively, are the owners of AEON Seri Manjung and 163 Retail Park.
Kar Sin Bhd is the legal owner of the AEON Seri Manjung holding on trust for YNH Hospitality.
163 Retail Park is a stratified seven-storey retail shopping centre located on a 226,860 square feet ("sq ft") freehold land at Mont Kiara, Kuala Lumpur. It is part of a mixed integrated development known as Kiara 163, comprising an office tower, a serviced apartment tower, and hotel suite tower, which is developed by YNH.
The shopping centre was completed in December 2018 and has a tenant mix of businesses. Jaya Grocer is the main anchor tenant of 163 Retail Park.
AEON Seri Manjung Shopping Centre is part of AEON Seri Manjung, located in Seri Manjung, Perak.
YNH said that ALX Asset would issue medium-term notes (MTN) under a proposed asset-backed securities MTN (ABS MTN) programme with a nominal value of up to RM500 million to pay for its acquisition.
It said that the ABS MTN programme might have up to one or more tranches, and that multiple classes of MTNs could be issued within each tranche.
YNH said it would be able to use the revenues from the sale of the two assets to pay off bank debt (RM335 million), replenish working capital (RM81.9 million), and cover projected costs for the disposals and the proposed ABS MTN programme offering (RM5.6 million).
The disposals are expected to be completed by the first half of 2023.