KUALA LUMPUR (July 17): Titijaya Land Bhd is acquiring Menara TM Semarak in Kuala Lumpur from Menara ABS Bhd for RM72 million.

In a bourse filing on Monday (July 17), Titijaya Land said its wholly-owned subsidiaries Titijaya PMC Sdn Bhd and Titijaya South Asia Sdn Bhd are buying the asset, comprising a 22-storey purpose-built office building together with the annexed six-storey Telekom Exchange and five level of basement car park, located at Jalan Raja Muda Abdul Aziz.

Titijaya Land said the group is acquiring the property, measuring 30,115 sq m in net lettable area, to lease and to provide the group with an additional form of income in addition to the income from its existing property development projects.

“This proposed acquisition will potentially enable the group to generate additional income through obtaining rental income or leasing income from the existing tenants and potential tenants as well as facilitate the entry into data centre business,” the group said said.

Titijaya Land ’s primary business is property development which has been the group’s key revenue contributor for the financial year ended June 30, 2022, contributing RM274.93 million to the group.

“The purchase price will be fully satisfied in cash, which shall be financed by internally generated funds and/or bank borrowings to be obtained by the purchaser (Titijaya PMC) or the nominee (Titijaya South Asia),” it said.

As at March 31, Titijaya Land has total borrowings of RM231.08 million, while its cash balance stood at RM162 million

The group expects the deal to be completed in the third quarter of 2024.

Titijaya Land shares closed unchanged at 26.5 sen on Monday, giving the group a market capitalisation of RM348.12 million.