KUALA LUMPUR (June 26): Yong Tai Bhd (KL:YONGTAI) is acquiring Sabah-based property developer Sumberjaya Builders Sdn Bhd for RM15 million, as it aims to tap into development opportunities in Lahad Datu and Tawau.

According to its bourse filing, Sumberjaya has entered into two separate joint development agreements with landowners for 11.97 acres in Lahad Datu and 15.25 acres in Tawau. Under the agreements, the landowners will receive their entitlement in the form of property units upon project completion.

Both land parcels are strategically located within mixed-use developments comprising residential and commercial properties, with existing infrastructure, road access and public amenities. Given the short development cycle of three to five years, Yong Tai said the additional revenue from these projects is expected to enhance its profitability and improve shareholder returns.

Yong Tai also stated that the preliminary feasibility study estimates that the Lahad Datu project and Tawau project will generate development profits of about RM10.80 million and RM29.78 million, respectively.

The shareholders of Sumberjaya are Datuk Tan Kah Choun, Tan Siew Fong, Tan Cher Min, Hong Choe Hoar and Sa Fung Ching @ Sa Nyuk Lan.

The company has two wholly-owned subsidiaries, namely Sumberjaya Assets and Properties Sdn Bhd and Sumberjaya Hartanah Sdn Bhd.

As of March 31, Yong Tai has total cash of RM5.61 million against total borrowings of RM198.05 million.

At Thursday’s close, Yong Tai’s shares were down half sen or 2.9% at 16.5 sen, valuing the group at RM70.75 million. Year to date, the stock has fallen by 10.8%.