Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 8): Titijaya Land Bhd has partnered China Railway Engineering Ltd to undertake a mixed development on a 6.06-acre piece of leasehold land at Embassy Row, Jalan Ampang here, with a gross development value (GDV) of RM2.1 billion.

To formalise the deal, a share agreement was entered between Titijaya's wholly-owned subsidiary Titijaya Resources Sdn Bhd (TRSB) and CREC Development (M) Sdn Bhd, Chan Peng Kooh and Rafidah Menan for the proposed acquisition of 10.44 million shares, representing the entire share capital of Ampang Avenue Development Sdn Bhd for a total of RM80 million. Of this total, RM10 million is a purchase consideration, while RM70 million is an assumption of the shareholders’ advances from Chan and Rafidah – shareholders of Ampang Avenue.

Ampang Avenue's 90%-owned subsidiary Nipah Valley Sdn Bhd is the land owner. Kuala Lumpur City Hall has given approval for mixed development with a plot ratio of 1:8:0.

Concurrently, both TRSB and CREC Development have entered into a share sale agreement to construct and develop the piece of land at Embassy Row, Jalan Ampang, into a mixed development.

The land has a market value of RM403 million. Ampang Avenue was appointed as the developer for the development.

Under the partnership, TRSB will take lead on sales, marketing, credit management and administration; CREC Development will monitor, manage, and supervise the day-to-day construction operational related matters.

Titijaya managing director Tan Sri Lim Soon Peng said the corporate exercise will complement the group's existing business in property development, and also enable the company to seek new strategic growth and future expansion plans within the property development in the Greater Kuala Lumpur, as well as ensure earnings sustainability for Titijaya.

"The JV will allow both parties to leverage on the synergistic outcomes, for mutual benefit. Given the strategic location of land, coupled with connectivity to key roads and highways, the project will cater to the anticipated demand for commercial and residential properties within the prime area," he told reporters, after the signing ceremony today.

Barring any unforeseen circumstances, the proposed acquisition is expected to be completed by the first quarter of 2017. 

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