KUALA LUMPUR: Titijaya Land Bhd, a prominent property developer, through its 70%-owned indirect subsidiary, Pride Hectares Sdn Bhd, is set to acquire a five-storey medium-cost flat building in SS15, Subang Jaya, Selangor, from Bank Negara Malaysia (BNM) for a cash sum of RM44.5 million.
The acquisition aims to transform the existing properties into a blend of commercial spaces, ushering in a new era of mixed-use development.
In a recent disclosure to Bursa Malaysia, Titijaya highlighted that Pride Hectares has inked 97 separate sale and purchase agreements with BNM for this strategic venture. With Titijaya's subsidiary, NPO Development Sdn Bhd, holding a 70% stake in Pride Hectares and the remaining 30% owned by Director Datuk Faizal Abdullah, the groundwork is laid for an ambitious undertaking.
This acquisition is expected to generate a synergistic impact on the adjacent property, First Subang SS15 Courtyard. Titijaya envisions this move as a pivotal step aligned with its growth strategy, focusing on expanding its land portfolio and investing in strategically positioned development properties across the Klang Valley.
By leveraging Subang Jaya's prime location, renowned for its developmental prospects, Titijaya anticipates a significant revenue stream and financial performance boost.
Funding for this venture will be sourced from internal funds and/or bank borrowings to maintain the group's gearing level within manageable limits.
Barring any unforeseen circumstances, the acquisition is expected to conclude by the end of the financial year 2024, positioning Titijaya for continued success and growth in the property development landscape.