KUALA LUMPUR (Feb 27): Property developer Titijaya Land Bhd plans to buy a company that owns three plots of leasehold land in Sabah measuring a total of 30.5 hectares, for RM70.9 million.
In a filing with Bursa Malaysia, Titijaya said it is acquiring Sri Komakmur Development Sdn Bhd from two individuals, Tee Tiong Lee and Tan Chuan Cheong, who own the company in a 49:51 ratio.
Titijaya said the acquisition would allow the group to gain access to prime land within the high-growth and fast maturing central development spine of Sabah.
The proposed development on the land would enhance its future revenue and earnings profits based on the land's value and its surrounding development, it added.
The plots of land, it said, are located near landmarks such as the Bank Negara Malaysia building, Royal Malaysia Customs Department, Bukit Padang Hospital, Sabah Golf and Country Club and government offices.
Titijaya said it plans to finance the acquisition via internally generated funds and bank borrowings.
At 3.33pm, Titijaya's share price was down two sen or 1.2% at RM1.65 on thin trade of 100 shares, giving a market capitalisation of RM673.6 million. — theedgemarkets.com