Titijaya partners CREC for RM2.1bil project

Yesterday, a block of 10.2 million Titijaya shares, or 2.5% of the company, changed hands in an off-market trade at RM1.72. This was on the back of another off-market transaction of 15 million Titijaya shares done at RM1.76 on Oct 18. Sources said the buyer of the blocks of shares was either CREC or some other related China parties.

KUALA LUMPUR: A subsidiary of property developer Titijaya Land Bhd, Titijaya Resources Sdn Bhd, has signed an agreement with CREC Development (M) Sdn Bhd for a mixed development project at Embassy Row in Jalan Ampang, Kuala Lumpur

The proposed development on 6.06 acres is expected to have a gross development value of RM2.1bil.

To carry out the project, the two companies acquired Ampang Avenue Development Sdn Bhd, whose subsidiary is the registered proprietor of the land, for RM80mil.

Titijaya group managing director Tan Sri Lim Soon Peng said the signing marked an important milestone for Titijaya in its efforts to broaden its revenue stream.

“The rationale of the proposed acquisition of Ampang Avenue is for Titijaya Resources together with CREC as shareholders of the JV company to form a strategic collaboration in relation to the proposed development of the land.

“We believe that this corporate exercise will enable us to seek new strategic growth and ensure earnings sustainability for Titijaya, moving forward,” said Lim.

He added that the proposed JV with CREC will enable both parties to leverage on synergistic outcome for mutual benefits.

CREC is a wholly-owned subsidiary of China Railway Engineering Corporation (M) Sdn Bhd, which in turn is a wholly-owned subsidiary of China Railway Group Ltd.

CREC is one of the world’s largest construction companies, with a history of more than 100 years and ranked 57th among Fortune World Top 500 Enterprises and 7th among Top 500 Chinese Enterprises in 2016.