KUALA LUMPUR (Dec 17): Titijaya Land Bhd has teamed up with Japan’s Tokyu Land Corp to jointly build and promote the RM1.5 billion Riveria City development in Brickfields here to the Malaysian and foreign markets.
In a filing with Bursa Malaysia yesterday, Titijaya said last Friday it signed a shareholders’ agreement with Tokyu Land’s overseas subsidiary Tokyu Land Asia Pte Ltd (TLA), and Riveria City Sdn Bhd (RCSB), a subsidiary of Titijaya, to regulate RCSB and the respective rights of Titijaya and TLA as shareholders of RCSB, and to jointly participate in the development.
Under the partnership, TLA will invest RM80 million in RCSB, of which RM40 million is for equity participation and another RM40 million for project financing.
“TLA will acquire a 30% equity interest in RCSB for RM40 million. The remaining 70% equity interest in RCSB will be controlled by Titijaya,” Titijaya said.
Simultaneously with the execution of the shareholders’ agreement, RCSB had entered into a share subscription agreement with TLA to issue and allot 600,000 shares and 39.4 million Class A shares in RCSB to TLA for RM600,000 and RM39.4 million respectively, and Titijaya will subscribe one million shares and 91.93 million redeemable preference shares for RM1 million and RM91.93 million respectively in RCSB.
In a separate statement, Titijaya deputy group managing director Lim Poh Yit said the joint participation with TLA in RCSB will provide Titijaya an opportunity for growth expansion and to access new markets and distribution networks, especially the Japanese with the advantage of TLA’s international presence and experience.
The Riveria City development features an office suite tower and two serviced apartment towers on top of a car park, a lobby and a shop podium. The exercise is expected to be completed by the second quarter of financial year ending June 30, 2021.
This article first appeared in The Edge Financial Daily, on Dec 17, 2019.
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