KUALA LUMPUR (March 22): Bina Puri Holdings Bhd and Titijaya Land Bhd have entered into a new joint venture to develop a residential and commercial project on an 11.2-acre land adjacent to the monorail depot in Brickfields.
In a filing with Bursa Malaysia, Bina Puri said its wholly-owned subsidiaries, Bina Puri Properties Sdn Bhd (BP Properties) and Bina Puri Development Sdn Bhd (BP Development), had signed a JV agreement with Titijaya yesterday.
It added that Syarikat Prasarana Negara Bhd, which owns the land, has agreed that BP Development be made the special purpose vehicle to undertake the project.
It also said that another wholly-owned unit of the group, Bina Puri Construction Sdn Bhd (BP Construction), plans to dispose of its 70% stake in BP Development to Titijaya for RM2.5 million.
Under the JV, BP Properties and Titijaya will cooperate to develop the land via BP Development which they would own on a 30:70 basis.
Bina Puri said the proposed JV is in line with its ordinary course of business which is construction and property development.
"Given the strategic location of the land in capital city centre with high development value, the group is confident that the proposed JV would further enhance the group's future revenue stream and contribute positively to its financial performance," it added.
Previously, in 2014, BP Construction and Titijaya had signed a JV for the latter's 70%-owned Prosperous Hectares Sdn Bhd to develop the land as its turnkey contractor.
Yesterday, that JV was terminated, and BP Construction entered into a share sale agreement with Titijaya to sell its 30% stake in Prosperous Hectares for RM900,000.
Thus, the previous JV and turnkey contract are now considered null and void.
Near the close of trade today, Bina Puri's share price was down half sen or 1.52% at 32.5 sen for a market capitalisation of RM86.83 million.
Titijaya slipped one sen or 1.79% to 55 sen, giving the group a market value of RM746.16 million. — theedgemarkets.com
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