KUALA LUMPUR (July 31): Titijaya Land Bhd has entered into a deal for the reclamation and development of 20.8 acres of land next to the Bayan Lepas WaterFront development site on the Penang island.

The property developer said its wholly-owned unit City Meridian Development Sdn Bhd signed the reclamation and development agreement with state-owned Penang Development Corporation (PDC) on Monday (July 31).

"Consideration shall consist of consideration in kind being PDC’s net developable land consisting of 55% of the net developable land measuring 8.551 acres, of which a minimum 50% of PDC’s net developable land shall be seafronting," said Titijaya in a bourse filing.

The estimated reclamation cost for the approved reclamation area is RM72.48 million, it added.

The reclamation work will commence within 12 months from the date of the commencement of work order and be completed within 36 months, provided City Meridian completes the reclamation of 2.992 acres of the approved reclamation area forming part of PDC’s net developable land as the first phase.

Titijaya said the reclamation project will “create additional usable and valuable land" in Penang, adding that "the combination of the existing 20.14 acres and the additional 20.8 acres reclaimed land will make the Bayan Lepas WaterFront a sizeable logistic and commercial hub and a preferred destination on Penang island".

“It is envisioned to be an important part of the greater effort for Penang state in attracting and supporting more high-value investments with its strategic proximity to nearby amenities, expressway, airport and free industrial zone, and a catalyst to stimulate the next level of economic development in Penang state,” the group said.

Titijaya said that the project will not have any effect on its issued share capital and substantial shareholders’ shareholdings, nor have any material effect on the net assets, earnings and gearing for the financial year ending June 30, 2024.

Shares of Titijaya closed half a sen, or 1.89%, higher at 27 sen, valuing the group at RM354.69 million.