KUALA LUMPUR (Jan 8): Yong Tai Bhd has secured RM100 million worth of financing from Bank of China for the construction of the Encore Melaka theatre at the group's Impression City mixed development in Melaka.

Yong Tai's subsidiary, PTS Impression Sdn Bhd, signed the facilities agreement with Bank of China for the part financing.

Yong Tai said RM90 million of the loan will be used to finance the construction of the theatre, which cost between RM300 million and RM400 million. The remaining RM10 million will be used for initial operational expenses.

The group's chief executive officer Datuk Wira Boo Kuang Loon said most local banks were hesitant to offer financial support as they did not understand the nature of the project.

"Only the Bank of China was confident enough to support the project," he told a press conference today following the signing of the agreement.

A heads of agreement was also signed between Yong Tai's subsidiary, YTB Impression Sdn Bhd, and Kirin Financial Group Ltd, an arm of Hong Kong-listed Kirin Group Holdings Ltd, for an investment of not less than RM400 million in development projects within Impression City.

Boo explained that the financial investment would see Kirin raising the sum from its investors, although the development projects would still be managed by Yong Tai.

PTS Impression also signed ticket sales agreements for more than RM100 million worth of tickets for its Encore Melaka performances in its Impression Series with six travel agents, namely Majestic Express Holidays Sdn Bhd, Apple Impression Holiday Sdn Bhd, Levingo Travel Sdn Bhd, Coachliner 707 Travel Tour & Tour Sdn Bhd, WTS Travel & Tours Pte Ltd and Shanghai Ctrip International Travel Service Co Ltd.

YTB Impression also signed an ICT service agreement with Agile Motion Sdn Bhd, which will design, supply and install an integrated system of smart city services for Impression City.

Sitting on a 15-acre site, Encore Melaka is Malaysia's first indoor theatre with a 360-degree rotating auditorium with a capacity of some 2,000 seats.

Average ticket prices will range from RM120 to RM130. This is in hopes to make it more affordable to tourists as it is considerably much cheaper than prices in China. The ticket sales target sits between RM120 million and RM130 million for the first year.

Impression City is a 138-acre integrated mixed development in Kota Laksamana, Melaka with a gross development value of RM7 billion and an estimated implementation time of eight years.

The development will include hotels, serviced apartments, commercial complexes, office towers, DIY experience centres, educational and wellness facilities, retail and shopping centres and a yacht club.