PETALING JAYA: Titijaya Land Bhd has set its business direction in the coming three years to focus on tie-ups with international property and construction giants which include China Railway Group Ltd and Tokyu Land Corp.
Deputy group managing director Lim Poh Yit said through collaboration with regional property and construction companies like China Railway and Tokyu Land, Titijaya would be able to enhance its reputation as well as improve its product quality on par with international property groups.
“The areas that the Main Market-listed property developer would be working on with its partners will be architecture, building designs, conceptualisation, property management and financing. This will also accord Titijaya with greater recognition among investors, ” he told StarBiz.
Lim said Titijaya is currently teaming up with CREC Development (M) Sdn Bhd (CRECD) to develop a mixed development on a 6.06-acre site at the Embassy Row in Jalan Ampang, Kuala Lumpur.
The mixed development named 3rdNvenue has an estimated gross development value of RM1.8bil. 3rdNvenue would comprise four blocks with a total of 2,400 home-offices, serviced apartments and retail lots.
“We are working with CRECD on launching the second phase of 3rdNvenue, which has a GDV of RM430mil, ” he added.
CRECD is a wholly-owned subsidiary of China Railway Engineering Corp (M) Sdn Bhd (CRECM), which in turn is a wholly-owned subsidiary of China Railway Group. CRECM is also participating in the RM140bil Bandar Malaysia project through a consortium named IWH-CREC Sdn Bhd.
Lim noted that Titijaya’s RM1.5bil RIVERIA City, an integrated development located in Brickfields, Kuala Lumpur, had last month received a major boost following the emergence of Japan’s leading real-estate giant, Tokyu Land, as its strategic partner.
Tokyu Land Asia Pte Ltd (TLA), a subsidiary of Tokyu Land, would invest RM80mil in Titijaya’s subsidiary, Riveria City Sdn Bhd (RCSB).
TLA will acquire a 30% equity interest in RCSB amounting to RM40mil. The remaining 70% equity interest in RCSB would be controlled by Titijaya.
In addition to the RM40mil initial equity injection by TLA, Titijaya Land and TLA would make available more funds by way of shares subscription into RCSB to the agreed limit by both Titijaya Land and TLA.
Tokyu Land is a comprehensive real estate company incorporated in Japan. It is a core subsidiary of the Tokyu Fudosan Holdings Group, a listed company on the Tokyo Stock Exhange.
Under the Titijaya–TLA collaboration, an office suite tower and two towers of serviced apartments on top of a car park/lobby/shop podium would be developed across a 3.05-acre leasehold land in Brickfields.
RIVERIA City, which is currently under construction, comprises 784 office suites, 1,398 serviced apartments, 24 shoplots and 2,246 vehicle parking lots, with a total built-up area of 2,921,984 sq ft.
Lim said: “Tokyu Fudosan has presence in Shanghai, Singapore, New York, Los Angeles and Jakarta. The collaboration will provide Titijaya with an opportunity for growth expansion as well as access to new markets and distribution networks, leveraging on TLA’s international presence and experience.”
He said the collaboration with TLA for RIVERIA City is an enhancement to Titijaya’s credibility, prestige and reputation.
With the TLA collaboration, Titijaya would be able work with TLA’s associates to leverage their vast project expertise in the RIVERIA City project.
This would, in turn, enhance the attractiveness and marketability of Titijaya and its property projects.
On the prospects for the property industry, Lim said he is optimistic of its outlook for this year, driven by the various government initiatives and the company’s plan to launch the second phase of the 3rdNvenue and RIVERIA project in Kuala Lumpur.
Last year, it launched Seiring Residensi, which is phase one of Titijaya’s Damaisuria township project.
Damaisuria is a new integrated township development by Titijaya, located in Bukit Subang, Shah Alam.
Developed in four phases, Damaisuria would have a gross development value (GDV) of RM1.59bil, while the first phase Seiring Residensi would have a GDV of RM677mil. Tower A of Seiring Residensi has a GDV of RM168mil.
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