KUALA LUMPUR: Titijaya Land Bhd's subsidiary, Pride Hectares Sdn Bhd, has entered into 97 sale and purchase agreements (SPA) with Bank Negara Malaysia to acquire five storey flats consisting of 97 units in Subang Jaya for RM44.5 million.
Titijaya plans to redevelop the flats into mixed commercial properties.
"The proposed acquisition is poised to yield a synergistic effect with the adjacent property, First Subang SS15 Courtyard. "This move is consistent with Titijaya Group's growth strategy, which involves expanding its land portfolio and investing in strategically located development properties within the Klang Valley. "This strategic approach aims to sustain Titijaya Group's presence and success in both property development and investment ventures," it said in a Bursa filing yesterday.
It is also optimistic that the acquisition will not only augment the future revenue stream but also make a positive contribution to the overall financial performance for the company.
Both parties agreed on an earnest deposit of RM3.56 million which will be paid to the authorised realtor, CBRE WTW Real Estate Sdn Bhd and a balance deposit of RM890,000 million to be paid to Bank Negara's solicitors.
The remaining RM40.05 million will be paid to Bank Negara's solicitors within 90 days from the date of the SPA or the unconditional date.
The acquisition is expected to be completed by the fourth quarter of the company's financial year ended 2024 which will be in June.