KUALA LUMPUR: Titijaya Land Bhd
wholly-owned subsidiaries, Titijaya PMC Sdn Bhd and Titijaya South Asia Sdn Bhd, have entered into a sale and purchase agreement (SPA) with Menara ABS Bhd for the acquisition of an office building in Kuala Lumpur for RM72mil.
In a filling with Bursa Malaysia, Titijaya said the building, also known as Menara TM Semarak, consists of a 22-storey purpose-built office building with an annexed six floors designated for a Telekom Exchange and five levels of basement car park. It spans 30,115 sq m in net lettable area, the filling added.
Titijaya said the proposed acquisition is aimed at securing an additional stream of revenue in the form of stable and recurring rental income in the long term, in addition to the income from its existing property development project.
Furthermore, it believes that the group could potentially benefit from the capital appreciation of the property in the future.
The group’s intention is to acquire the property for leasing, which will provide an additional source of income apart from the revenue generated from existing property development projects.
“This proposed acquisition will potentially enable the group to generate additional income through obtaining rental income or leasing income from the existing tenants and potential tenants,” it noted in the filling.
Additionally, Titijaya believes this acquisition presents an opportunity for the group to enter the data centre business, expanding their portfolio and diversifying their income sources.
