KUALA LUMPUR (Feb 5): Property developer Titijaya Land Bhd's 70%-owned indirect subsidiary Pride Hectares Sdn Bhd is buying a five-storey medium-cost flat building, comprising 97 two-bedroom units, in SS15, Subang Jaya, Selangor from Bank Negara Malaysia (BNM) for RM44.5 million cash.

It intends to redevelop the properties into mixed commercial properties.

In a filing with Bursa Malaysia on Monday, Titijaya said Pride Hectares had entered into 97 separate sale and purchase agreements with the central bank for the proposed acquisition. Pride Hectares is 70% owned by Titijaya's wholly-owned subsidiary NPO Development Sdn Bhd, and 30% by Pride Hectares director Datuk Faizal Abdullah.

"The proposed acquisition is poised to yield a synergistic effect with the adjacent property, First Subang SS15 Courtyard. This move is consistent with the Titijaya group's growth strategy, which involves expanding its land portfolio and investing in strategically located development properties within the Klang Valley. This strategic approach aims to sustain the group's presence and success in both property development and investment ventures," it added.

Titijaya said capitalising on the strategically advantageous location in Subang Jaya, which holds significant development value, the group is optimistic that the proposed acquisition will not only augment the future revenue stream, but also make a positive contribution to the overall financial performance of the group.

It plans to fund the proposed acquisition by internal funds and/or bank borrowings.

Barring any unforeseen circumstances, the proposed acquisition is not expected to have any material effect on the group's gearing level for the financial year ending June 30, 2024 (FY2024).

The proposed acquisition is expected to be completed by end-FY2024.

Titijaya shares closed unchanged at 26 sen on Monday, giving it a market capitalisation of RM348 million.