YNH Property Bhd which prides itself as a premier developer of upscale residential and commercial properties has outlined its funding priorities for the RM170 mil Sukuk Wakalah maturing on Feb 26, following MARC Ratings’ recent rating action.
The group is focused on meeting its reserve-account requirements by accelerating collections from on-going developments and completing asset disposals to fulfill its financial commitments.
The group acknowledged MARC Ratings’ decision to downgrade its RM700 mil Islamic Medium-Term Notes Programme from BB_IS to B_IS while placing the rating on MARCWatch Negative.
Under its Sukuk Wakalah’s scheduled cash accumulation arrangement, YNH had accumulated RM54.4 mil in its designated reserve account as of Oct 27 this year.
The group is taking steps to meet the October 2026 required balance of RM61.2 million within the stipulated contractual remedy period.
YNH explained that the RM6.8 mil difference relates to the scheduled contractual accumulation of funds in the designated sukuk reserve account rather than a missed principal repayment.
The RM170 mil Sukuk Wakalah is scheduled to mature on Feb 26, 2027 with YNH remaining focused on fulfilling its reserve-account requirements and meeting its redemption obligations.
On this note, the group remains focused on fulfilling its monthly reserve-account requirements while progressing its funding plan for the February 2027 maturity.
Sales recovery in progress
On the asset monetisation front, YNH is working closely with the purchaser and advisers to fulfill the remaining conditions precedent for the proposed RM170 mil disposal of its Desa Sri Hartamas land to Sunway Living Space Sdn Bhd.
The group is prioritising the completion of all documentation and obligations within its control.
Upon completion, the proposed RM170 mil disposal is expected to generate approximately RM105 mil net cash proceeds after settling the existing RM65 mil loan tied to the land subject to final completion adjustments and related costs.
Operationally, YNH continues to drive construction progress and sales billings at its flagship Solasta Dutamas project in Kuala Lumpur alongside its townships in Manjung, Perak.
Steady site progress at both locations is expected to generate progressive billings and cash inflows to support both project completion and group-level financing obligations.
“We recognise that market confidence depends on meeting our commitments,” asserted YNH Property’s group managing director Allan Yu Kai Leun.
“Our responsibility is to turn project sales and asset monetisation into cash within the required timelines while keeping our developments moving on the ground.”
Added Yu: “The February 2027 sukuk maturity is a clear priority for its management. We’ll communicate our progress through concrete funding and transaction milestones so that our sukuk holders, bankers and shareholders can assess our position based on facts.”
Separately, YNH’s audited financial statements for its FY2026 ended June 30, 2026 published on Oct 30 has received an unmodified audit opinion from Morison LC PLT following qualified opinions in the preceding three reporting periods.
During its FY6/2026 period, the YNH board had approved implementation of its Investment Governance Standard Operating Policies and Procedures (Investment SOPP).
Looking further ahead, YNH holds an undeveloped landbank of more than 800 acres which provides a long-term pipeline for future development and selective monetisation.
Its management has taken a realistic view of these holdings by evaluating potential sales against the time and capital required to unlock their value rather than treating undeveloped land as immediate liquidity.
At the close of Friday’s (Nov 6) market trading, YNH was down 1 sen or 4.34% to 28 sen with 412,200 shares traded, thus valuing the company at RM148.1 mil. – Nov 7, 2026
