Titijaya Land, Bina Puri reorganise Brickfields joint-venture project

PETALING JAYA: Titijaya Land Bhd has terminated the joint venture (JV) agreement with Bina Puri Construction Sdn Bhd (BPCSB) to jointly participate in a mixed development project in Brickfields, Kuala Lumpur, given its plan to buy the remaining 30% stake in Prosperous Hectares Sdn Bhd (PHSB) for RM900,000.

However, it has entered into a new JV agreement with property developer Bina Puri Properties Sdn Bhd (BPPSB) and Bina Puri Development Sdn Bhd (BPDSB) for the development of the land.

Titijaya said the proposed acquisition of a 30% stake in PHSB is in line with a proposed new JV arrangement with BPDSB, a wholly owned subsidiary of BPCSB.

Meanwhile, Titijaya also proposed to buy a 70% stake in BPDSB from BPCSB for RM28,000.

BPCSB and BPPSB are the wholly owned subsidiaries of Bina Puri Holdings Bhd, while BPDSB is an indirect wholly owned subsidiary of Bina Puri through BPCSB.

Syarikat Prasarana Negara Bhd (Prasarana), the registered lessee of the land, had in 2013 awarded to BPCSB a mixed development project on portion of the land in Brickfields on design and build basis. The project involves the construction and completion of a mixed residential and commercial strata development.

BPCSB has been appointed as the developer of the project. Subsequently, Prasarana has consented the appointment of BPDSB as the special purpose vehicle nominated by BPCSB to undertake the project via the execution of a Joint Land Development Agreement in 2014 made between Prasarana and BPDSB (JLDA).

Prasarana, via Prasarana Integrated Development Sdn Bhd, had given its written consent for the change in BPDSB’s shareholding structure.

Prasarana and BPDSB will enter into a supplemental agreement to the JLDA to amend, vary and otherwise supplement the terms and conditions in the JLDA, allowing the equity participation of Titijaya up to 70% of the shareholding in BPDSB.

“Given the strategic location of the land in Kuala Lumpur City Centre with high development value, the group is confident that the exercise would further enhance the future revenue stream of the group and contribute positively to the group’s financial performance,” Titijaya said.