PETALING JAYA: Property developer Titijaya Land Bhd has formalised a collaboration with CREC Development (M) Sdn Bhd (CRECD) for a RM575mil property development project known as The Shore in Kota Kinabalu.
Both parties signed a memorandum of understanding, witnessed by Prime Minister Datuk Seri Najib Tun Razak, in Beijing. Titijaya group managing director Tan Sri Lim Soon Peng said in a press statement that both parties will leverage on each others’ capabilities for the project.
“We are honoured to have CREC’s trust to work together for the second project. Jointly, we will be tapping into the growing property market in Sabah and aim to attract more investors from China, particularly those who favour the commercial and residential property industry, as well as investments in hospitality properties,” he said.
Beijing-based China Railway Group Ltd, one of the world’s largest construction companies, owns CRECD. The Shore has a total of 1.82 acres.
This will be the second collaboration between Titijaya and CRECD, the first being a mixed project on a 6.06-acre site at the Embassy Row in Jalan Ampang, Kuala Lumpur.
The mixed development named 3rdNvenue has an estimated gross development value of RM2.1bil.
CREC has been appointed as the main contractor for 3rdNvenue, where it will also monitor, manage and supervise the day-to-day construction-related operations.
The framework agreement between Titijaya and CREC was signed was signed for The Shore project in March after a share sale agreement for the proposed acquisition of the entire issued share capital of Sri Komakmur Development Sdn Bhd (SKDSB) for a purchase consideration of RM70.9mil.
SKDSB owns three parcels of land in Sabah, measuring a total of 75.44 acres, which have a cumulative market value of RM172.64mil. The partnership for this project means that Titijaya has access to prime land within the high-growth and fast maturing central development spine of Sabah.
Notable landmarks of these strategic parcels include the Bank Negara building, Royal Malaysia Customs, Bukit Padang Hospital, and the Sabah Golf & Country Club.
Titijaya and CREC have both expressed their interest to explore further collaboration in property development in Sabah.
News Source: Star Property