Titijaya Land Berhad is pleased to announce that the Company has today entered into a Framework Agreement ("FAâ€) with CREC Development (M) Sdn Bhd ("CRECDâ€) to collaborate on a property development project known as The Shore, Kota Kinabalu.
A filing with Bursa Malaysia today (Feb 27) shows that the collaboration between Titijaya and CRECD records the provisional intention of both parties, with respect to the Engineering, Procurement, Construction and Commission Agreement, joint marketing collaboration for The Shore, as well as participation in business opportunity offered by Laksana Wawasan Sdn Bhd, beneficial owner of the Proposed Ascott Hotel.
Concurrently, Titijaya also signed a Serviced Residence Management Agreement with The Ascott Ltd ("Ascottâ€) for The Shore. Under the agreement, Ascott will manage the serviced residence components of The Shore, for a contract period of 15 years.
CREC is one of the world's largest construction companies, developer of Bandar Malaysia, as well as JV partner with Titijaya on a project in Embassy Row. On the other hand, Ascott is the world's largest international serviced residence owner-operator with over 26,000 units in key cities around the world.
Speaking after the signing of FA with CRECD, Tan Sri Dato' Lim Soon Peng said: "By entering into the FA, The Shore will be able to leverage on CREC's strength in the construction sector to further enhance the built quality and project implementation. In turn, CREC stands to tap into the growing property market in Sabah through collaborations with Titijaya. With the strong CREC presence in China, The Shore shall attract more investors from China, particularly those who favour the commercial and residential property industry, as well as hospitality property investment.â€
"Having The Ascott group on board, whom has deep presence in Greater China, will surely help elevate branding and augment the future development value of The Shore, and attracting tourists from Greater China, such as Mainland China, Hong Kong & Taiwanâ€, he added when asked about the signing with The Ascott Ltd.
The FA between Titijaya and CREC has signed a share sale agreement ("SSAâ€) for the proposed acquisition of entire issued share capital ("Proposed Acquisitionâ€) of Sri Komakmur Development Sdn Bhd ("SKDSBâ€) for a purchase consideration of RM70.9 million. SKDSB is the registered owner of 3 parcels of land in Sabah, measuring a total of 75.44 acres, which has a cumulative market value of RM172.64 million. The Shore is located in Kota Kinabalu, with a total land area of 1.82 acres. The SSA will be satisfied via internally generated funds and bank borrowings.
Commenting on the Proposed Acquisition, Titijaya Land Berhad Group Managing Director Tan Sri Dato' Lim Soon Peng said: "This Proposed Acquisition enables Titijaya to immediately gain access to 75.44 acres of prime land within the high-growth and fast maturing central development spine of Sabah. The Land is situated in the prime area of Sabah, strategically located near notable local landmarks such as The Bank Negara Building, Royal Malaysia Custom, Bukit Padang Hospital, Sabah Golf & Country Club, among other buildings of local major government bodies.â€
He added that The Shore takes up just 1.82 acres of the total 75.44 acres of land that the Company has acquired from the Vendors. Thus, 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.
"Additionally, there are more direct flights to Sabah these days, which provide greater connectivity from various countries. This will further promote the tourism industry and ignite a vibrant business environment. 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.
Located on the last vacant land in the heart of Kota Kinabalu City Centre, The Shore is a new waterfront premium class hub that entails luxury mixed-use commercial hub docked within a prime waterfront enclave of Kota Kinabalu. Its unique U-shape design makes it the first of its kind within the vicinity. With 25 storeys in total, the development shall comprise 561 units in built-up sizes ranging from 409 sq. ft. and 541 sq. ft., with a price tag starting from RM453,000.00. The project is expected to be completed within 48 months from the commencement of construction.