Titijaya partners CREC to develop RM575 mil mixed project in Kota Kinabalu

KOTA KINABALU (Feb 27): Property developer Titijaya Land Bhd is partnering China Railway Engineering Ltd to jointly develop mixed-use project with a gross development value (GDV) of RM575 million on a 1.82-acre land in Kota Kinabalu's city centre.

Known as The Shore, Titijaya said in a statement the project will be developed as the new waterfront premium class hub, with luxurious mixed-use units docked within a prime waterfront enclave.

The project will be 25 stories tall and comprise 561 units in built-ups ranging from 409 sqft to 541 sqft, with price tags starting from RM453,000.

The project is expected to be completed within 48 months from the start of construction. To formalise the deal, Titijaya inked a framework agreement (FA) with CREC Development (M) Sdn Bhd today.

Titijaya also inked a serviced residence management agreement with The Ascott Ltd for The Shore. Under the agreement, Ascott will manage the serviced residence component of the project for 15 years. Laksana Wawasan Sdn Bhd is the beneficial owner of the proposed Ascott Hotel.

Titijaya said the FA between Titijaya and CREC was signed after Titijaya inked a share sale agreement for the proposed acquisition of the entire issued share capital of Sri Komakmur Development Sdn Bhd for RM70.9 million.

Sri Komakmur owns three parcels of land in Sabah, measuring a total of 75.44 acres, which has a cumulative market value of RM172.64 million. The Shore, to take up some 1.82 acres, will be located on one of the parcels.

The land purchase will be satisfied via internally generated funds and bank borrowings.

Titijaya group managing director Tan Sri Lim Soon Peng said the proposed acquisition will enable Titijaya to immediately gain access to 75.44 acres of prime land within the high-growth and fast maturing central development spine of Sabah.

Lim said the land is situated in the prime area of Sabah, strategically located near notable local landmarks such as the Bank Negara building, Royal Malaysia Customs, Bukit Padang Hospital, and Sabah Golf & Country Club, besides other buildings of local major government bodies.

As The Shore only takes up a small portion of the total 75.44 acres the company is buying, Lim said Titijaya and CREC "are both keen to explore the possibilities of further collaborations in the property development scene in Sabah, to establish more new landmarks in the state". — theedgemarkets.com

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