Titijaya acquires properties in Kota Kinabalu for RM105 mil

• Titijaya said the location of the two assets—offering strong connectivity to both UMS and the upcoming Hospital UMS—makes the area a highly desirable locality in Kota Kinabalu.

KUALA LUMPUR (May 26): Titijaya Land Bhd (KL:TITIJAYA) has proposed the acquisition of two properties located adjacent to Universiti Malaysia Sabah (UMS) in Kota Kinabalu for a total of RM105 million.

The first acquisition, for RM99 million, involves the purchase of a parcel of land with foundation works fully completed and two blocks of 19-storey purpose-built student accommodation buildings comprising 513 apartment-style units, the developer said in a statement on Monday.

Together, the apartment blocks have a total capacity to accommodate 3,078 students.

Titijaya intends to operate the completed buildings and complete the remaining project works, tapping into the demand for student and housing accommodation in the surrounding area.

Titijaya said the group has entered an agreement with Yayasan Universiti Malaysia Sabah, Bay Precinct Sdn Bhd and Lok Yee Hsun for the acquisition. Bay Precinct is a construction company while Lok is one of its directors.

The second proposed acquisition, for RM6 million, involves a parcel of land with an existing building structure originally intended for the Bangunan Koperasi UMS project, launched in 2012.

The original development plan would have seen the construction of a 14-storey apartment building with 476 apartment units and a one-storey shop lot with 38 units. However, the project has not been completed and has since been abandoned.

Following the acquisition of this asset from Bay Precinct and Lok, Titijaya intends to resume the project to develop new residential properties.

Titijaya said the location of the two assets—offering strong connectivity to both UMS and the upcoming Hospital UMS—makes the area a highly desirable locality in Kota Kinabalu.

Titijaya managing director Datuk Lim Poh Yit noted in the statement that the group has a presence in Sabah via its luxury mixed development The Shore and the Citadines Waterfront Kota Kinabalu hotel managed by Ascott.

"Today's announcement deepens our foray into Sabah and East Malaysia at large, positioning us to be a long-term beneficiary of the region's growth," Lim added.

The acquisitions are expected to be completed within nine months.

Titijaya shares closed down half a sen or 2.04% at 24 sen, bringing the group a market capitalisation of RM321 million.

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