Titijaya eyes more projects

  • Property
  • Wednesday, 30 Jul 2014

PETALING JAYA: Property developer Titijaya Land Bhd is mulling over development projects on two parcels of land in the Klang Valley to beef up its already large gross development value (GDV).

Sources said that Titijaya was in the process of submitting a proposal to KTMB Bhd to build a massive commercial building on the piece of land that is located between the Subang Jaya Komuter station and Shah Alam. It is believed that there is an option for the building to be KTMB’s new headquarters.

It has been speculated that KTMB is looking to unlock the values of some of its land, including its current corporate office, which is a heritage building located in the heart of the city.

The proposal is also subject to approval from the Railway Assets Corp, a Federal statutory body under the Transport Ministry.

“Even if the authority gives the green light, the project may take time and was unlikely to commence until 2016, as they have to realign the KTM track first,” said a source.

The other parcel that Titijaya is targeting is located in the popular spot in Ampang near Mah Sing Group Bhd’s M City project.

The land, measuring less than 4.05ha, is near the Ampang-Kuala Lumpur Elevated Highway.

Sources said the high-rise mixed development had a GDV of some RM1bil.

It is unclear though who is the seller or the asking price for the Ampang land.

After Titijaya’s announcement of a RM2.5bil project in Jalan Eaton recently, analysts estimated Titijaya’s GDV at close to RM10bil.

RHB Research said the property player’s growth prospects were strong and underpinned by its stable stream of projects and gross margins that were higher than the industry average.

The brokerage said its gross margins ranged from 35% to 40%.

Titijaya has also ventured into Penang after it acquired an 8.1ha parcel near the Penang second link from its major shareholder and group managing director Tan Sri Lim Soon Peng for RM126mil.

In April, it signed a joint-venture agreement with Bina Puri Holdings Bhd to develop the RM1.3bil mixed development in Brickfields.

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