Posted on : 27-02-2017 | By : sabah today | In : Local Business
KOTA KINABALU: Property developer Titijaya Land Bhd is partnering China Railway Engineering Corp Ltd to jointly develop mixed-use project with a gross development value (GDV) of RM575 million on a 1.82-acre (0.74ha) land in Kota Kinabalu’s city centre.
Speaking to reporters after the signing ceremony of several agreements, deputy managing director Lim Poh Yit said this is Titijaya’s maiden development project in East Malaysia.
“The reason we venture into Kota Kinabalu is because it is a vibrant tourism city and we can position ourselves to fit into the demand of the market here. Being able to bring in CREC (China Railway Engineering Corp (M) Sdn Bhd) is also an advantage for us,” he said, adding that the construction of the project will start this year.
CREC managing director Wang Youping said CREC and Titijaya has built mutual trust and confidence after their first development project in Jalan Ampang, Kuala Lumpur.
“We said last year if there was a good project, we would collaborate [again],” he added.
Known as The Shore, Poh Yit said the project will be positioned as the new premium class waterfront hub, with luxurious residential and serviced residential units docked within a prime waterfront enclave.
The project will be 25-storey tall and comprise 561 units with built-ups ranging from 409 sq ft to 541 sq ft, with price tags starting from RM453,000.
The project is expected to be completed within 48 months from the start of construction, which is expected to be this year. To formalise the deal, Titijaya inked a framework agreement with CREC Development (M) Sdn Bhd yesterday.
Titijaya also inked a service residence management agreement with The Ascott Ltd for The Shore. Under the agreement, Ascott will manage the serviced residence component of the project for 15 years.
The announcement came after Titijaya proposed to buy Sri Komakmur Development Sdn Bhd for RM70.9 million, which has three parcels of land measuring 75.44 acres, with a cumulative market value of RM172.64 million and could fetch a total GDV up to RM1 billion.
The proposed buy will be satisfied by internal funds and bank borrowings. Titijaya group managing director Tan Sri Lim Soon Peng said the proposed acquisition will enable Titijaya to immediately gain access to several prime land within the high-growth and fast-maturing central development spine of Sabah.
As The Shore only takes up a small portion of the lands the company is buying, Soon Peng said Titijaya and CREC “are both keen to explore the possibilities of further collaborations in the property development scene in Sabah, to establish more new landmarks in the state”.
“The Sabah state government has also been very encouraging in promoting its tourism industry to make it another major source of income for the state, to drive its economy. All these efforts and catalysts shall certainly help to improve the demand for commercial and residential properties in Sabah,” he added.
SOURCE:- THE EDGE MARKETS