Bina Puri, Titijaya in joint venture
JV to develop residential and commercial project in Brickfields
PETALING JAYA: Bina Puri Holdings Bhd and Titijaya Land Bhd are entering into a new joint venture (JV) to develop a mixed residential and commercial project on 11.2 acres of land in Brickfields, Kuala Lumpur.
In a filing with Bursa Malaysia yesterday, Bina Puri said its wholly-owned subsidiaries, Bina Puri Properties Sdn Bhd (BP Properties) and Bina Puri Development Sdn Bhd (BP Development), signed a JV agreement with Titijaya on Wednesday.
“The proposed JV is in line with the ordinary course of business of Bina Puri group, which are construction and property development.
“Given the strategic location of the Land in Kuala Lumpur city centre with high development value, the group is confident that the proposed joint venture would further enhance the future revenue stream of the group and contribute positively to the group’s financial performance,” said Bina Puri.
The land is located adjacent to the monorail depot. Bina Puri added that Syarikat Prasarana Negara Bhd, which owns the plot of land, has consented to the appointment of BP Development as the special purpose vehicle to undertake the project.
The company also said another wholly-owned unit of the group, Bina Puri Construction Sdn Bhd, intends to dispose of its 70% stake in BP Development to Titijaya for RM2.5mil. Under the JV, BP Properties and Titijaya will cooperate to develop the land via BP Development which they would own on a 30:70 basis, said Bina Puri.
In a separate statement, Bina Puri also announced the termination of joint venture agreement that was signed between Bina Puri Construction and Titijaya in April 2014.
Bina Puri Construction and Titijaya had signed a JV for the latter’s 70%-owned Prosperous Hectares Sdn Bhd (PHSB) to develop the land as its turnkey contractor. Bina Puri Construction also entered into a share sale agreement with Titijaya to sell its 30% stake in PHSB for RM900,000.
Bina Puri said the disposal is in line with a proposed new JV arrangement.