PETALING JAYA: Titijaya Land Bhd has partnered Japan-based property developer Tokyu Land Corp for the RM1.5bil Riveria project located in Kuala Lumpur.
In a statement yesterday, Titijaya said Tokyu Land Asia Pte Ltd, a subsidiary of Tokyu Land, will be investing RM80mil which include RM40mil for the development of Riveria project and RM40mil for equity participation.
“The joint participation of Titijaya and Tokyu Land in the Riveria project will provide Titijaya with an opportunity for growth as well as access to new markets and distribution networks, leveraging on Tokyu Land’s international presence and experience.
“Currently, Tokyu Fudosan Holdings Group has its presence in Shanghai, Singapore, New York, Los Angeles and Jakarta, ” said Titijaya Land deputy group managing director Lim Poh Yit.
Tokyu Land is a real estate company incorporated in Japan. It is a core subsidiary of the Tokyu Fudosan Holdings Group, a listed company in the Tokyo Stock Exhange. Tokyu Fudosan is also one of the companies listed on the Nikkei 225 Index.
The Riveria project involved a mixed-development project comprising one tower of office suites and two towers of serviced apartments development, shop lots and vehicle parking lots spanning over 3.05 acres of leasehold land.
Under the agreement, Tokyu will be subscribing to 30% stake in Riveria City Sdn Bhd (RCSB), a joint-venture company that was set up to develop the Riveria project. While the remaining 70% will be held by Titijaya.
In a filing with Bursa Malaysia yesterday, Titijaya said the 30% stake in RCSB was previously held by Bina Puri Properties Sdn Bhd.
The joint venture agreement entered into by Bina Puri Porperties and Titijaya earlier for RCSB was mutually terminated in March last year.
The termination involved Bina Puri Properties transferring its shares in RCSB to Titijaya for RM120,000.
Titijaya had entered into a shareholders’ agreement with Tokyu Land and RCSB to regulate the affairs of RCSB and the respective rights of Titijaya and Tokyu Land as shareholders of RCSB, and jointly participate in the development, construction, promotion and marketing of Riveria City.
Simultaneously, RCSB has entered into a share subscription agreement with Tokyu Land’s shares in RCSB for RM40mil, and Titijaya’s stake in RCSB the sum of RM92.93milmil.
Titijaya shares closed unchanged at 29 sen each.
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