KUALA LUMPUR (Dec 16): Titijaya Land Bhd has teamed up with Japan's Tokyu Land Corp to jointly build and promote the RM1.5 billion Riveria City development in Brickfields here to the Malaysian and foreign markets.

In a bourse filing today, Titijaya said it had on Dec 13, signed a shareholders’ agreement with Tokyu Land's overseas subsidiary Tokyu Land Asia Pte Ltd (TLA), and Riveria City Sdn Bhd (RCSB) — a subsidiary of Titijaya, to regulate the affairs of RCSB and the respective rights of Titijaya and TLA as shareholders of RCSB, and to jointly participate in the development.

Under the partnership, TLA will invest RM80 million in RCSB, of which RM40 million is for equity participation, while another RM40 million will be utilised for project financing.

"TLA will acquire a 30% equity interest in RCSB for RM40 million. The remaining 70% equity interest in RCSB will be controlled by Titijaya," the filing said.

Simultaneously with the execution of the shareholders’ agreement, RCSB had entered into a share subscription agreement with TLA to issue and allot 600,000 shares and 39.4 million Class A shares in RCSB to TLA for RM600,000 and RM39.4 million respectively, and Titijaya will subscribe for 1 million shares and 91.93 million redeemable preference shares for RM1 million and RM91.93 million respectively in RCSB.

In a separate statement, Titijaya deputy group managing director Lim Poh Yit said the joint participation with TLA in RCSB will provide Titijaya an opportunity for growth expansion, as well as to access to new markets and distribution networks, especially to the Japanese with the advantage of having TLA’s international presence and experience.

The joint participation with TLA will also further enhance the Riveria City development, which features an office suites tower and two towers of serviced apartments on top of a car park/lobby/shop podium across a 3.05-acre piece of land in Brickfields.

Barring any unforeseen circumstances, the exercise is expected to be completed by the second quarter of the financial year ending June 30, 2021 (2QFY21).

Titijaya shares closed unchanged at 29 sen today, giving it a market capitalisation of RM390.69 million.