Titijaya Land Bhd is buying a 99% stake in BJ Properties Sdn Bhd, which owns 6.8 acres of leasehold land in Ampang that it plans to develop into a RM1.5 billion gross development value project.
In a filing with Bursa Malaysia today, the group said its purchase is in line with its growth strategy in expanding its land bank and investing in strategic property development projects in the Klang Valley.
The land is expected to be used as mixed development with a focus on the residential component, complemented by some commercial elements.
Titijaya’s wholly owned subsidiary Tulus Lagenda Sdn Bhd will pay up to RM9.9 million for the stake.
Based on the audited financial statements for the financial year ended Aug 31, 2017, BJ Properties recorded a net loss of RM1.06 million and negative shareholders fund of RM3.07 million. The land in Ampang has a book value of RM103.67 million.
Titijaya intends to fund the proposed subscription via internally generated funds and/or bank borrowings. The company’s share price closed 1.5 sen lower to close at 52.5 sen with some 331,100 shares changing hands.