KUALA LUMPUR (Nov 29): Titijaya Land Bhd said its wholly-owned Epoch Property Sdn Bhd has today entered into a conditional share subscription agreement with Japan-based Tokyu Land Corp (TLC) for a subscription consideration of RM47 million.

In a filing with the stock exchange today, Titijaya said the agreement entails the subscription by TLC of 47 million units (representing 100%) of Class A shares in Epoch Property.

The proposed subscription is to enhance the development of an ongoing project known as Mizu Residence with joint effort and cooperation between Titijaya and TLC, vis-à-vis the designing, planning, construction, and promotional events of the development, said Titijaya in the bourse filing.

Incorporated in 1953, TLC — a real-estate company — is a core subsidiary of Tokyo Stock Exchange-listed Tokyu Fudosan Holdings Group.

Epoch Property is currently developing three blocks of serviced apartments and one block of small office, home office (SOHO) for its H20 Project in Ara Damansara.

The serviced apartments include a 15-floor block of 300 units, with a total built-up area of approximately 234,000 sq ft, known as Mizu Residence, with a gross development value of RM300 million.

The proposed subscription is expected to be completed by end of next month and to contribute positively to future earnings of the company for the ensuing financial year.

"We are envisioning through the knowledge transfer from TLC's expertise in urban development, especially its expertise in transit-oriented development, retail knowledge, property management, it will further strengthen Titijaya's objective to offer products that will be a half-step ahead of the time," said Titijaya group managing director Tan Sri Lim Soon Peng in a press statement.

Meanwhile, its deputy group managing director, Lim Poh Yit, shared in a separate statement that the company will continue to align business strategies for synergistic and strategic alliances moving forward.

"This will be done by scouting for joint venture and land-swap project opportunities with reputable government agencies and other synergistic partners," he added.

Shares in Titijaya fell two sen or 1.42% to RM1.39 at market close today, giving it a market capitalisation of RM886.62 million.