Construction on Menara YNH to begin in six months

Construction on Menara YNH to begin in six months
Jan 4, 2010 - PropertyGuru.com.sg

YNH Property Bhd is expecting to start work of its proposed Menara YNH project in the next six months.

Although Kuwait Finance House Bhd (KFH) cancelled the plan to purchase one of the two office blocks at Menara YNH two weeks ago, YNH said it would still carry on with the development of the project.

Early last year, KFH offered to acquire a 50 percent interest of the office blocks of Menara YNH from YNH Land Sdn Bhd, which is a wholly-owned subsidiary of YNH Property.

Daniel Chan, head of corporate strategy for YNH, said it was currently making some adjustments to the project design to improve the tenant space by 10 to 15 percent.

The project, which is according to the specifications of the Green Building Index, will have a total net space of 1.5 million square feet.

“We will be resubmitting the amended project plan for approval. The development order was obtained last December,” said Mr. Chan.

He said the project was among YNH’s target and expected to be completed within five years.

It will have two 45-storey office blocks; each will have a net space of 600,000 square feet to be constructed at the top of a three-storey retail podium. Additionally, its gross development value (GDV) is expected to be around RM 2 billion, or RM 1,500 psf.

Mr. Chan said the construction of the retail podium will be prioritised and it is expected to be completed in three years.

Several foreign and local investors signed early last year the RM300 million sale and purchase agreement for the 300,000 sq ft retail space.

On whether the YNH is looking for another buyer for the other parts of the project, Mr. Chan said: “We are not in any hurry to sell unless a good offer turns up. So far, we are talking to a few interested parties. With the strategic location of the property, we are confident of good interest and sealing a good deal.”

He added that the company is keeping its option open and that several parties offered a joint-venture partnership for the project or purchase over the property.

“We are optimistic of the project as its value has appreciated. When the project was first mulled three to four years ago, its GDV was only RM1bil but, today, its value has doubled.”