Titijaya partners Ascott for RM4.1b serviced residence developments

KUALA LUMPUR (April 6): Titijaya Land Bhd has entered into an agreement with The Ascott Ltd for two of its upcoming property developments located in Penang and Shah Alam, Selangor, which have a collective gross development value (GDV) of RM4.1 billion.

At the signing ceremony today, Titijaya group deputy managing director Lim Poh Yit said the collaboration will serve as a valuable avenue for the property developer to enter the international market.

"We will be able to benefit from Ascott's global platform, professional management and marketing roadmap set out for Titijaya's anticipated developments," he told pressmen today.

The term of agreement is for a period of 10 years, whereby both parties will have the option to extend the agreement for an additional five years, on the condition of a mutual agreement from both companies.

Throughout the term, Titijaya will remain as the rightful owner of the land, property and facilities.

Located on the south-east of Penang Island, Lim said this serviced residence project, which has a GDV of RM2.6 billion, will consist of 200 units, ranging from studio to two-bedroom apartments.

For the Shah Alam project, which has a GDV of RM1.5 billion, Lim said the 250-unit serviced residence in Glenmarie will be located at the intersection of the major highways — Elite Highway, Guthrie Corridor and New Klang Valley Expressway.

"The property will be part of a mixed-use development that houses offices and one of the largest shopping malls in that vicinity," he said.

Titijaya expects to launch both projects by 2017, and will offer guests a choice of studios, one- and two-bedroom apartments with facilities, such as a gymnasium, swimming pool, launderette and residents' lounge.

Lim said the partnership will deliver synergistic benefits to both parties by leveraging on Ascott's global presence and Titijaya's development expertise.

"Ascott's core competency has been in the extended stay market, which has put them in a very resilient position and given them a strong competitive edge, with an excellent occupancy rate track record," he said.

Titijaya group managing director Tan Sri Lim Soon Peng, on the other hand, said the partnership will elevate Titijaya's project portfolio as well as provide quality serviced apartments to the Malaysian market.

"Ascott's world class management and support system, and extensive network will be key in attracting a diversified stream of tenants to the development," he said. – theedgemarkets.com

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