KUALA LUMPUR: Titijaya Land Bhd (TLB) inked a second collaboration with Japan’s Tokyu Land Corp (TLC) to develop the RM1.5 billion Riveria City project in Brickfields, Kuala Lumpur.
The deal entails TLC's unit Tokyu Land Asia Pte Ltd (TLA) investing RM80 million in Riveria City Sdn Bhd (RCSB), a subsidiary company of TLB, whereby RM40 million is equity participation while RM40 million is for project financing.
A filing with Bursa Malaysia showed that TLA will acquire a 30 per cent in RCSB for RM40 million. The remaining 70 per cent in RCSB remains controlled by TLB.
In addition of the RM40 million initial equity injection by TLA, both TLB and TLA will make available funding by way of shares subscription into RCSB to the agreed limit by both TLB and TLA, the filing noted.
"The joint participation of TLB and TLA in RCSB will provide the company with an opportunity for growth expansion as well as the access to new markets and distribution networks, leveraging on TLA’s international presence and experience," TLB deputy group managing director Lim Poh Yit said in a statement today.
Tokyu Land is a comprehensive real estate company incorporated in Japan.
It is a core subsidiary of the Tokyu Fudosan Holdings Group (Tokyu Fodusan), which is listed on the Tokyo Stock Exchange.
Tokyu Fudosan is also one of the companies in the Nikkei 225 Index, which refers to the price-weighted average of the 225 top-rated Japanese listed companies.
"Currently, Tokyu Fudosan Holdings Group has its presence at Shanghai, Singapore, New York, Los Angeles and Jakarta," Lim said.
Under the TLB–TLA collaboration, an office suites tower and two towers of serviced apartments on top of a car park/lobby/shop podium will be developed across a 3.05-acre leasehold land in Brickfields.
The Riveria City is currently under construction, comprising 784 office suites, 1,398 serviced apartments, 24 shop lots and 2,246 vehicle parking lots, with the total built-up area of approximately 2,921,984 square feet.
TLB, on 13th December 2019, had entered into a shareholders’ agreement with TLA and RCSB to regulate the affairs of RCSB and the respective rights of TLB and TLA as shareholders of RCSB, and jointly participate in the development, construction, promotion and marketing of Riveria City to the Malaysian and foreign markets.
Lim said the collaboration with TLA in Riveria City is an enhancement to TLB’s credibility, prestige and reputation, and this accord TLB with greater recognition amongst investors.
With the TLA collaboration, TLB will be able work with TLA’s associates to leverage their vast project expertise in the Riveria City project.
This will in turn enhance the attractiveness and marketability of TLB and its property projects.
