Titijaya Land Bhd obtained shareholders’ approval to acquire about 23 acres of leasehold land in Batu Maung, Penang to build a mixed-use development after its extraordinary general meeting (EGM) here today. The land is located within 1.5km from the Sultan Abdul Halim Mua’dzam Shah Bridge (the Second Penang Bridge).
The mixed-use development will be built by Titijaya Land’s wholly-owned subsidiary, City Meridian Development Sdn Bhd and is the group’s first development outside of the Klang Valley.
“The property market in Penang is highly competitive, but we believe that the demand for residential and commercial properties in Penang is expected to remain favourable among local and foreign buyers,” deputy group managing director Lim Poh Yit (pictured, right) told reporters after the EGM.
The land acquisition will be satisfied via a cash consideration of RM126 million in bank borrowings and internal funds.
The newly acquired landbank will be used to develop a proposed mixed-use development with a gross development value (GDV) of about RM2.6 billion. The proposed development, which is yet to be named, will offer about 1,700 small office, home office units across four blocks, retail components and four office towers.
According to GDP Architects Sdn Bhd’s associated partner Hairul Afzahizan Osmayati (pictured, below), the development will be built in three phases.
“We phased out the developments into three [phases]. The first phase will have two residential blocks with retail and shops; Phase 2 will be the remaining retail and two residential blocks. The last phase will be [all four] office [towers],” said Hairul. GDP Architects is the appointed master architect for the whole project.
Lim said: “We plan to launch Phase 1 this year. It will be either year-end or early next year, which is our launching schedule.” He added that the first phase will have an estimated GDV of RM600 million.
Lim is aiming to obtain approval from the authorities to develop the project by early next year.
After the land acquisition, Titijaya Land has 432.47 acres of landbank throughout Malaysia.
“We believe that this acquisition will expand our development activities in the future, which will contribute positively to the group’s future financial performance,” Lim added.