YNH Property seeks to close RM6.8 million sukuk reserve shortfall

YNH Property Bhd said it was addressing a RM6.8 million gap in its sukuk reserve account while preparing to repay RM170 million in Islamic debt on Feb 26, 2027. The account held RM54.4 million on Oct 27, below October’s required RM61.2 million.

The developer attributed the gap to the funding accumulation schedule under its sukuk Wakalah arrangement, saying it was not a missed principal payment. It said it was working to restore the required balance within the contractual remedy period.

MARC Ratings had downgraded the company’s RM700 million Islamic medium-term notes programme and put the rating on MARCWatch Negative. YNH said its priorities included satisfying monthly reserve requirements, collecting payments from developments and completing asset sales.

Its funding plans include selling land in Desa Sri Hartamas to Sunway Living Space Sdn Bhd for RM170 million. YNH said it was working with the buyer and advisers on outstanding conditions. The proposed transaction is expected to yield about RM105 million in net cash after repayment of a RM65 million loan secured against the site, subject to final adjustments and costs.

The company also expects construction progress and sales billings at Solasta Dutamas in Kuala Lumpur and its Manjung townships in Perak to bring in cash. Group managing director Allan Yu Kai Leun said management was prioritising the February maturity and would report progress through funding and transaction milestones.

Separately, YNH said Morison LC PLT issued an unmodified audit opinion on its accounts for the year to June 30, 2026. Published on Oct 30, the accounts followed three reporting periods with qualified opinions.