In an exciting move, Titijaya Land Bhd has announced its acquisition of Menara TM Semarak in Kuala Lumpur from Menara ABS Bhd, for a substantial sum of RM72 million. This acquisition is set to further strengthen Titijaya Land’s foothold in the property development sector while presenting an opportunity to diversify its revenue streams.
The purchase will be carried out by Titijaya Land’s wholly-owned subsidiaries, Titijaya PMC Sdn Bhd, and Titijaya South Asia Sdn Bhd. The acquired property consists of a 22-storey purpose-built office building along with the annexed six-storey Telekom Exchange and a five-level basement car park. Strategically located at Jalan Raja Muda Abdul Aziz, the property offers a net lettable area of 30,115 sq m.
The primary objective behind this acquisition is to leverage the property for leasing purposes, providing Titijaya Land with an additional source of income complementing its existing property development projects. The company foresees the potential of generating rental income from existing and potential tenants, as well as exploring opportunities to venture into the data center business.
Titijaya Land has witnessed substantial success in its property development ventures, becoming a major revenue contributor. For the financial year ending June 30, 2022, the property development segment contributed RM274.93 million to the group’s earnings.
To finance the purchase price fully, Titijaya Land will utilize internally generated funds and/or bank borrowings through its purchaser, Titijaya PMC, or the nominee, Titijaya South Asia. As of March 31, the company’s total borrowings stood at RM231.08 million, while the cash balance amounted to RM162 million.
The completion of this acquisition is expected in the third quarter of 2024, further propelling Titijaya Land’s growth trajectory and solidifying its position as a leading player in the property development market.